Ber months are not yet officially here but I can feel the spirit of Christmas already.
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The Philippine Stock Exchange Index (PSEi) plummeted by 6%
today. After two days of non trading due to massive flooding around Metro
Manila and a public holiday, the PSEi resumes trading in a bloodbath.
The fall of the PSEi is expected considering the region’s slide
for the past few days. Philippine wasn’t spared from the onslaught.
Indonesia stock market (JCI) plunged by more than 8% last
Monday and Tuesday. It technically hit the bear market as the fall from its
highest peak is more than 20%. Thailand’s stock market (SET) dived by more than
6% for the past three days. Indian stocks (SENSEX) is down by 8% in four days.
The biggest drop we’ve seen in the PSEi recently was last
Jun 13, 2013 when the market went down by 6.75%. Today’s drop has the same
magnitude as it was back then. Basically, due to the three days of suspended
trading, PSEi catch up with red numbers of the region’s stock market. We’re now
at par with most of them.
Who in his right mind will jump in joy after seeing his net
worth massively reduced through stock market? Nobody. However, if you are
willing to ride out this slump and continue to invest every month of your
salary while the prices are still down, then you’re likely earn a better return in the
long-term.
My goal in stock market has always been long term. You know,
I’m kind of establish this barat price to the stocks I’m following and believe
me, this barat price I computed and calculated are now within the striking
distance of getting hit.
Generally, I don’t care about the ups and downs of the
market. At the very least, the period of holding should be ten years. However,
there are instances when fate will favor you and the stock market will give you
a chance to buy at low prices. Today is one of those days.
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So, while majority of the investors are scared to death on
their reducing net worth and fund managers scrambling to find answers to the
clients, we the long-term investors are relaxing in our home watching our
favorite TV program or playing with our kids. The stock prices are at fire sale
discount and life’s just getting better.
Happy days are ahead.
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