Monday, July 30, 2007
Time to Save
The time to save in order to buy stock mutual fund or stocks in the future is our answer to the last Friday, July 29, 2007 stock market sharp fall after a massive selloff in Wall Street.
For those who eat business news you are very much aware that the PSEi plummeted 140.92 points its steepest single day fall since August 28, 1997. The PSEi closed the week sharply lower and dropped 5.87% to 3,518.76 points from 3,738.28 points last week, as investors reacted with alarm to a massive overnight sell-off on Wall Street driven by US housing and credit market concerns. On July 27, the PSEi shed 140.92 points following the second largest single-day decline of the Dow Jones this year at 311.50 points.
There is also the Fitch ratings who expressed doubts on the ability of the government to limit its fiscal deficit within P63 billion this year. It pointed out that with economic growth expected at 6.5% in the first half of the year, the 3.4% increase in tax receipts was rather poor. Add to the announcement of GMA that she issued a memorandum to all government owned firms to remit more tha the minimum 50% of their income to help cover the big tax collection shortfall.
We need this noise to filter down, wait for the market to reach the bottom, hold on to our cash and then when the right time comes buy stocks mutual fund and other equities. The Chinese are right, in every problem there are opportunities!.