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Stock Market Drop No Cause Of Concern According To Analyst

Business analyst Mike Alimurung said that the hefty price drop of stocks is normal.  He added that the Market is simply corrected itself, and that people are cashing in on profits and moving their portfolio to more reliable investments. In an interview on CNN, he said: "If you look at what's been going on in the last year in the U.S. and in the Philippines...the market's been up by over 20 percent. And so there was bound to be a correction." "With inflation happening, there's a fear that interest rates go up and that makes money tighter. And so, people are looking for that opportunity, let's pull money off the table and move it to higher interest rates, let's move it to safer investments." He noted that the country’s economic fundamentals still make for a sound investment despite the effect of TRAIN in commodity and fuel prices.  Based on this, things are the same, so investors will have to consider these external factors in deciding on their options. Alimurung cited that foreign investors are also weighing in as they comprise a majority in the local Stock Market. With the big losses in the US, people are pulling money out of where they’re profitable. Foreign investors have made a lot of money from the Philippine stock market, and now they’re simply rebalancing their portfolio. Alimurung assured that the market will remain stable as long as the government remains on track with its infrastructure program and keeping sound monetary policies. Simply because the good infrastructure will keep monetary policy solid. In a separate interview, the Philippine Stock Exchange (PSE) Chief Operating Officer Roel Refran said that the plunge in U.S. stocks could have a "ripple effect" on other markets, including the Philippines. Stocks went into free fall in the U.S. on Monday (Tuesday morning in the Philippines), with the Dow Jones Industrial Average suffering its worst closing point in history at 1,175 points. It was a 4.6 percent drop, the biggest decline since August 2011. Inevitably, it had an impact on Asia, with Japans' Nikkei Index also plunging 4 percent on Tuesday morning. Just like Alimurung, Refran also noted that he is seeing a stable Philippine market. He added that the Philippines is very much fundamentally firm, which can be credited to the underlying economy.  
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The post Stock Market Drop No Cause Of Concern According To Analyst appeared first on iMoney.ph.



This post first appeared on IMoney: Finance And Savings Advice In Philippines, please read the originial post: here

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Stock Market Drop No Cause Of Concern According To Analyst

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