In the Stock Market; Time is Your Friend.


In the Stock Market; Time is Your Friend.

Time is your friend, never go against it, always be at its good side and you will reap the rewards. To prove this, let's analyze the data from 1993 to 2017. Why 1993? It's because 1993, is when the MKsE (Makati Stock Exchange) and the MSE (Manila Stock Exchange) merged to form PSEI (Philippines Stocks Exchange Index). The PSEI serves as the benchmark for the country's market and it's only fitting that we study it. This chart gives us 24 years worth of data to prove that in time the Philippine market goes up.


Prices of the PSEI from January 1993 to January 2017


 The stock market is not a set of random numbers there are reasons why it moves up or down. Earning from the stock market depends on how you react or don't react when the market moves. Here are two major economic winds that brought the PSEI down. 

1. In January 1997 to January 1998, the market dropped from 3158 to 1891 points. This mark the year of the Asian Financial Crisis. It took 11 years before the PSEI went above its 1997 performance. 

2. From January 2008 to January 2009, the stock market dropped from 3625 to 1925 because of the US economic recession. 

What's interesting is that, after every drop, PSEI's upward swing has been higher and stronger. That's why in investing, time is still your strongest ally.

Comments

  1. how about 2015 to 2016.is it domestic problem?

    ReplyDelete
    Replies
    1. I think it's because of the presidential election sir.

      Delete

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