Market is red, go back to bed!

I just want to break from the commentary I'm writing about the local stock market. And just share my thoughts on what I believe is now the Philippine Stuck Exchange.

On the first rally in the U.S. Dow last Wednesday night, I had high hopes that our market would follow suit. However, our rally yesterday was a fake rally. People began selling into the rally. I watched as the Phisix went from +40 to close about -60. I thought, people just want to panic, a bandwagon of panic sellers so to speak. They must have seen the index dip below 3,400 that's why it triggered the sell off.

Then, last night, the US Dow was up another 150 points, and the Philippines? Well we were up about 40 points, then drifted lower, then thankfully (!),we closed -6points (only) from the 2nd. The hardest hit was the second liners. I guess this is stage 2 of the current bear streak. It's always the blue chips that die first. So, hopefully, we've bottomed out near term.

If the US Markets are up tonight, we might see a healthy bounce come Monday, but that's assuming the panic sellers have finished unloading their positions. When you invest in the stock market as a trader, you would have had days of successive heart attacks given the way the market has been moving. But I just want to be a contrarian in the bear cycle. And the word cycle, is probably the best word to describe my position. I'm still holding on to some of the stocks I've been holding for some time.

If you are the investor, and you know that there is nothing fundamentally wrong in the local economy, you would be buy a select few of issues in the market now. Then invest it for the long haul, probably keep it until the year ends. This statement is by no means an endorsement, but I think that's how you weather this storm. You have to gauge yourself, are you a trader or an investor?

I still have to analyze myself, and my needs. It will always boil down to your need, is it instant profit? Or an alternative form of investment? With that objective in mind, you'll know if you should be cutting loss now, or just holding it out through this big bump on the road.

I guess my motto now is the banner title I've posted - whether you're a trader or an investor.