Historic riseBy Randell Tiongson on October 7th, 2010
The local stock market ended up in a historic high today at 4,245 points! Not only is our local index on a high, it’s on a rampage. The historic high was also achieved in a relatively short time.
Volume turn-over was about 4 Billion bucks which is pretty decent but not great. It indicates that many Pinoys are not as invested as they should be and I reckon that a big chunk of those invested are through off-shore funds. A good target for volume would maybe be 10B or more with the bulk being average Pinoy investors so that we can reap the economic impact of a very lively stock market.
While there’s much to celebrate, I wish to remind people that the stock market is really for long term investors and it should be consistent with their investment objectives and risk tolerance.
Further, diversification should always be practiced as this remains to be a really good tool for risk management. As I read somewhere, one should enter the stock market at the sound of alarms, and leave it at the sound of trumpets — or something to that effect.
Life is short, take some risk — calculated risks; but remain prudent. Happy investing!