Aftermath of typhoon Haiyan on the Philippine stock market
So many people wonder how the Typhoon will affect the Philippine economy and what it will do to the Philippine stock market.
This is a tricky question as the stock market is as easily affected by perceptions as it is by the fundamentals of the businesses that are listed.
Here's what I think. Everyone will be cautious. Foreign money will keep to the sidelines longer and slowly the adventurous local investors will pick up blue chips and other stocks with attractive valuations.
In other words, any trouble we may see won't be because of the Typhoon. That said, I still find Philippine stocks to be overvalued and the current investment environment is not one that I would like to participate in. I've been reading through financial reports of Philippine companies and will update this blog for potentially good buys. I'm afraid though that it will be a while before I find anything based on my methods.
This is a tricky question as the stock market is as easily affected by perceptions as it is by the fundamentals of the businesses that are listed.
Here's what I think. Everyone will be cautious. Foreign money will keep to the sidelines longer and slowly the adventurous local investors will pick up blue chips and other stocks with attractive valuations.
In other words, any trouble we may see won't be because of the Typhoon. That said, I still find Philippine stocks to be overvalued and the current investment environment is not one that I would like to participate in. I've been reading through financial reports of Philippine companies and will update this blog for potentially good buys. I'm afraid though that it will be a while before I find anything based on my methods.
Comments