stocks that are a shelter from the storm
Finding stocks that can weather the storm in the Philippine Stock Market is the ideal strategy but it is no easy task. Our market feeds on perceptions and plays on fears. To find the ideal stock, it must not only be truly be isolated from the economic downturns , it must also be popularly known to be so among the trading community.
My strategy is to go long, and go domestic.
Common mistakes
The first common sense strategy would be to find the companies that have zero or limited exposure to the United States. But prudence will have us make sure that they are neither directly or indirectly exposed. For example, we may have a company that in theory exports only to singapore and hong-kong. But if we find out that those exports are components of parts or items that go to the United States, then the exposure is there.
I would stay away from exporting companies altogether for a safe bet. My current opinion on exports is that the whole world is intricately connected directly and indirectly to the U.S. There will be a ripple effect if there's a strong slowdown.
Going Domestic
The better strategy i think is to ride on the sunny domestic demand. By sticking to companies like PLDT that have services swallowed up by Pinoys at home, continuous revenues are a good bet.
Going long
Going long would be like a safety net. The outlook on the Philippines remains relatively cloud free for the long run. By sticking to companies that are part of this good long-term outlook, we are assured that mistakes in the short term will iron out and reward us in the long-term.
My strategy is to go long, and go domestic.
Common mistakes
The first common sense strategy would be to find the companies that have zero or limited exposure to the United States. But prudence will have us make sure that they are neither directly or indirectly exposed. For example, we may have a company that in theory exports only to singapore and hong-kong. But if we find out that those exports are components of parts or items that go to the United States, then the exposure is there.
I would stay away from exporting companies altogether for a safe bet. My current opinion on exports is that the whole world is intricately connected directly and indirectly to the U.S. There will be a ripple effect if there's a strong slowdown.
Going Domestic
The better strategy i think is to ride on the sunny domestic demand. By sticking to companies like PLDT that have services swallowed up by Pinoys at home, continuous revenues are a good bet.
Going long
Going long would be like a safety net. The outlook on the Philippines remains relatively cloud free for the long run. By sticking to companies that are part of this good long-term outlook, we are assured that mistakes in the short term will iron out and reward us in the long-term.
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