Gus Cosio says so

Ideas on the Philippine Stock Market

Smart in Manila

9:20   Wednesday    July 8, 2009

New York stocks were down overnight with the Dow declining 2 %.  In the past, Philippine stocks would react in the same direction.  It had not been the case recently.  There were days when the knee jerk reaction was tonock k prices down only to see stronger recovery late in the session.

I think smart money should be lightening up for the time being.  I simply do not agree with a market that continues to buy expensive or overvalued stocks and expects to sustain a rally in the long run.  I’m a believer in mean returns, i.e., if we see unusually high returns now, the market will take back some of it later.

Anyway, I hope we have a more pragmatic set of buyers and sellers today.

http://www.condron.us

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July 7, 2009 - Posted by | Financial markets in Asia

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