- Philippine Stock Exchange Index: Will End 2019 Between 7400 and 7500? - December 18, 2019
- CROWN Stock Analysis: Trade the Range or Wait for a Breakout? - December 17, 2019
- PIP Stock Analysis: Is It Still Good to Buy Pepsi Despite the Tender Offer? - December 17, 2019
I’ve noticed that brokers have started to conduct in-person seminars where they will share their thoughts about the current stability and future direction of the main bellwether index or PSEi.
Try to attend those seminars and you’ll also hear the same thing that I’m going to tell you right now – I’m bullish on PSEi.
I’d like you to see this monthly chart of PSEi from 1999 to June 2017.
This monthly chart shows that PSEi’s movement inside the uptrend channel is intact.
The analysts’ current sentiment on PSEi is one, big, strong catalyst for the main index’s most probably future direction. My sentiment on PSEi is my outlook of the Philippines’ economy, too.
Now, buying anything and everything, just because I’m bullish on PSEi, is far from being a logical human being.
I’ve seen how things rolled since 2001. The 2008 crisis made many believe that 2008 was the end of the bullishness of the Philippine stock market. Nine years later, today, PSEi has surged by more than 425% despite how it seemingly hit its rock-bottom in 2008. If you were already investing in the stock market around those years, you would have certainly said, “Oh snap. I didn’t see that coming!”
If you are one of our clients in the Stock Signals Philippines, I strongly encourage you to take advantage of the availability of our Investment Guide. Of the 23 stocks chosen by MSCI Philippines, we’ve picked the ones where you could maximize portfolio return through the Sharpe ratio.
We chose to use the Sharpe ratio so we can measure the size of the reward for every risk available for each of the 23 MSCI Philippines stocks. Therefore, by using historical data and the Sharpe ratio method, we are able to identify which among the 23 MSCI Philippines stocks could give the highest possible return.
The Sharpe ratio is not an absolute indicator but we’re happy with the results of the backtests we did. No more guesswork on what percentage of your capital should be allocated on which stocks because the Sharpe ratio suggests one for you already.
That sounds good for a busy person like you who cannot afford to spend days studying 300+ stocks on the Philippine Stock Exchange, isn’t it?
Over the past years, I’ve learned that the profitability in the stock market is not about knowing that you have a bullish outlook of the overall market. You don’t need to be an Einstein to know the trend by just looking at the chart. You can also tell that you’re bullish if you’ve heard or read second-hand information from social media.
Having a bullish outlook doesn’t make you money. The profitability in stock investing is in knowing what you’re going to do to take advantage of that bullish outlook.