Monday 29 July 2013

MONEY MATTERS : 2013 GHOST MONTH AND THE PHILIPPINE STOCK MARKET


In Chinese tradition, the 7th month of the lunar year meant the ghost month. You'll recall that February marks the Chinese New Year, count the 7th month from there and you get August. An article from Inquirer explained it best: "In this seventh month in the Chinese calendar, the spirits of the dead are believed to be wandering the earth, so it is not considered a good time to sign contracts, enter into new business ventures or even get married. 

While Filipino companies do not necessarily believe that hungry ghosts wander the earth in August and spread bad luck, a number of them do feel a slowdown in sales in the entire third quarter, not just during the Ghost Month."

RANDOM BITS:
♣ Third quarter is a season when people (in PH) has just paid (or will pay) their tuition fees.
♣ Asian Stock Market experiences a noticeable slow down during August.
♣ Chinese Ghost Month will fall on August 7 to September 4 this 2013.

Philippine Stock Exchange Index (PSEi) and the Ghost Month:
The ancient search of an absolute formula telling traders that this is the rock bottom and ultimate high is still on going. And it seems that even the ghost month superstition is not a 100% rule. Some even says with the graphs and facts, it should not be an Au-ghost month but a wake-me-up-when-September-ends season (due to September posting the lowest average level at PSEi contrary to August).

I personally do not believe in the ghost month season but if the market responds (with low prices) as expected , it's best to top-up your existing mutual equity funds, UITF or stock investment within stock dips. What a good way to buy those elusive blue-chip stocks when they're on discount. Hello PLDT (tel)!

You know what they say?
TIMING-IN IS FAR BETTER THAN TIMING THE MARKET.
Translated: Start investing now rather than guessing whether it's the perfect time or whatevs. And oh, it's never too late to invest in the stock market (Click HERE). After all, you can't get a tan if you're not in the sun. Be it investing or pursuing that masteral degree or hugging your loved ones, I have 2 words for you. -CMK.

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4 comments

  1. I'm not Chinese but I believe in these things. Last August was not a great month for me. There were several misfortunes and bad luck in the air and now that I read this, I understand a bit. Best to stay away from signing contracts or making deals, I guess it's not a lucky month.

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  2. Agreed! Theres no such thing as perfect market to people who are afraid on investing or trying things... Love your post!

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  3. Aha! That's why August's a bad time to do activities such as evening strolls, traveling, moving house, or starting a new business. :O Thanks for another informative post Miss K :)

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  4. thank you for sharing. I really learned a lot through your blog :)

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