By: King San Josè Santos, RFP, MIFC, LFA
As of today, July 30 2021, PSEi close with a -3.5% triggering a panic selling due to another ECQ in the Philippines.
The property value decreased its value lead by SM prime (-4.1%) , BDO (-3.95) and Ayala land at (-6.7%) respectively. The properties suffered the most and fell by 5%. We are also expecting Ghost month few weeks from now where people set aside investments. We are also expecting demand for commercial properties for SME's and retail as more shops starts to complete close down as uncertainty with the delta variant is still in the pipeline.
Year to date , PSEi fell at 12%.
How to we take advantage on this panic selling?
Remember, Psei fell YTD which is based on the start year. It depend when and how much you acquired the specific asset. If you start acquiring during dips, you either gained 20% to 40% from last year panic selling.
Technical analysis:
4 key notes notes we need to focus on the price:
Momentum: 50/200 ema is now entered a "death cross' where we expect a very negative momentum based on market sentiment which will give more pressure to the market.
Fibonacci level : 38.2% already broke down which will give way to the next level at 5600 respectively.
RSI level is now at: 30 Even though it is a confirmation of the negative momentum, it also triggers a future rebound that we are expecting within the year along with the election coming this 2022.
In summary,
Our objective is to buy low and sell high. This is the time you start creating your investment fund . A good strategy is by doing cost averaging as it lowers your risk and maximizing the opportunity by buying more units when the price is low and buying less units when the price is high. This will give you a good cost average per unit. Prices below 6000 is already a discount.
Are you ready to invest and start earning?
You may take advantage by investing in our investment funds that reflected the PSEi.
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