Why Is PSE Experiencing A Bear Market Right Now?

This current market feels like on par or worse than the Pandemic market.

At least yung Pandemic ay mabilisan ang pagbagsak ng market then mabilisan din ang pagrecover.

This current market feels like a slow awkward dance. It feels more like nilelechon ka pero sa mahina lang na apoy.

Why is PSE experiencing a bear market while most other markets are reaching all-time highs?

Corruption?

A lot of traders are pointing out the corruption on our government as the main culprit on why our market is down.

Well, ever since I can remember ay may some form of corruption naman talaga sa kahit kaninong administration sa Pilipinas.

I took a little dive on what is the difference of our market now versus nung Pandemic and I found out that during Pandemic especially the month of March 2020 ay our government instructed GSIS to go on a frenzy buying para masupport ang local market. Bumuhos man ang foreign funds ay namimitigate kasi may bumibili.

Ngayon ay tila walang ganun na nangyayare kaya bawat buhos ng foreign funds ay bagsak lang ng bagsak ang prices.

Our market is still heavily dependent sa foreign funds.

Foreign-dominated market pa din tayo kaya once panay benta ng foreign funds ay we sink deeper and deeper.

Ang mga local brokers natin ay pamprocess lang talaga ng trade. They cannot or will not absorb all the foreign selling na nangyayare.

Walang power magbuy up ang locals para malift ang market natin.

We live or die sa foreign funds.

Yan ang dilemma ng pagiging emerging market.

When the foreign funds start to buy ay ilang taon na bull market. When they decide to sell ay matic bear market.

Ang good thing lang ng market natin na ito ngayon ay naweweed out yung mga traders.

Ito din ang best market to start a trading career.

Unang pasok mo pa lang ay naeexperience mo na agad ang low volatility at low volume. DI ka na maninibago unlike sa mga nagstart ng trading career nila nung bull market.

Most stock prices ay nasa baba so wala nang mas gagandang entry pa sa local trading kesa sa time ngayon.

You learn sa bear market and earn sa bull market. Not the other way around.

I can see a lot of traders na ngayon pa lang papasok sa trading na talagang makikinabang once this bear market ends. And yes, sooner or later ay titigil na din ang outflows ng foreign funds at magsisimula na silang bumili sa baba.

Ganyan naman ang cycle. They sell. They buy. They sell. They buy.

That is basically what they do for a living.

I hope this blog gives you some form of clarity on what is happening now sa local market natin.

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