Lost of value caused P1.7 trillion in stock market value

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The stock market lost P1.7 trillion in just three weeks due to the unfolding flood control scandals.?   Do you agree?  Or some other factors were at play?   This was disputed by Sec. Go as fake news.   

Phil ambassador to US also surnamed Romualdez says many investors from US are wary of the corruption issues in Phl.   The US Dept of State has noted the corruption in the PHL.         

Start of global stock market crash, of a recession

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When USA sneezes, the whole world trembles:  Some weaknesses in US economy:

1.  Weakening of regional bank;   one regional bank to close every week

2.  Largest share of GDP is consumer spending.  70% of total GDP, and is financed by credit cards

3.  Apocalypse of commercial real estate;   about to crash

4.  Banks sitting on large portfolio of commercial loans;

5.  Weak residential market (repeat of 2008)

6.  Large number of unemployment.   Even top tier company:    Google, Tesla, Intel.

Global stock market crash has began

World Wide Stock markets plunging

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Why are they crashing?   Because of prospect of recession in US.  Less than expected job creation and high unemployment rate.  Global uncertainty due to Iran Israel escalation of conflict. Bangladesh turmoil.

Stock market as in Nikkei saw double digit decline during trading.  This is unseen and reminiscent of 1987 crash.   

Should we be worried?  Or Phisix has plunged well ahead of the world market.   Will the Philippine GDP growth be affected.?

Should we continue with the Maharlika (sovereign fund)  Or is it going to do bargain hunting for collapsed stocks?

Will POGO ban affect the real estate sector, stock market?

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Some economist say the effect will be minimal.  Govt officials say that the revenue from POGO is not that much.  China welcomed the banning of POGO

There is much negative social effect:   source of criminality, scams, well losses from gambling.  And as the Senate investigation is pointing out, can be source of security risk -  espionage. Some of their workers could be spies, or soldiers of the PLA

All ready, real estate companies are predicting drop in rents as many offices will be vacated.  Initially the real estate market reacted.  The prices of real estate companies drooped days after the POGO ban was announced.          

Will investors avoid the Philippines due to BBM win?

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The PSE dipped the day after BBM unofficial results came out.   There were reports that JP Morgan put PHL at the bottom of their investment list in ASEAN.   Mainly because of his academic credentials

This post does not think do.  PDU30 who admitted he is not an economist made sure he got a good economic team and managed the PHL economy well.   

Philippines has large population (high consumer and  local demand) is located centrally in Pacific region, has plenty of trained work force,    The investors will stay.   

If the fundamentals are good, if PHL is a good tourist destination and costs are low here, investors will continue to come here.   The conclusions allegation are illogical and do not make good sense

The investors will not bother much as to who leads the country 

Of late, the  ambassadors of many countries have paid courtesy call to the President elect showing the fake news to be fake

 

Economic indicators favor high oil prices?

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Rizal Philippines
February 5, 2016

From the Guardian - why low oil prices hurt the stock market?

This post has seen several posts and watched several news at BBC, CNN, Channel News Asia that many stock markets closed lower in 2015, many of the shares being dragged by low oil prices.  High prices favor wealth creation and not consumer welfare.  Truly, a robust economy does not favor those who have less in life.  They are anti thesis.  Thus a country with great GDP, would also have poor people because wealth would be concentrated only in the hands of few stockholders, and stock market players?