Philippine Stock Exchange Wrapup Report - JayceeDeGuzman.com

Some of my clients in the Stock Signals Philippines have been asking whether we’re already in a bear market or still in a correction mode. Before I drop a straight-cut answer, let’s define the two.

Many believe that a local bourse or the main index is in a bear market if it has gone down by more than 20% for more than two months.

Some say an index should go down by more than 20% for three to six months for it to be officially considered to be in the bears’ territory.

On the other hand, if the 20% (more or less) downturn did not last for 2 months, that means the market only experienced a correction.

There’s really no official rule whether the downturn should go beyond 2, 3, or 6 months. But I take the 2-month rule.

Let’s calculate.

PSEi April 2015 to January 2016

From the all-time high of 8,134.38 last April 10, 2015 to January 15, 2016’s closing score of 6,449.50, we got a downturn of 26.12 percent. It’s been 9 months. Citing the 2-month rule and the 20% minimum downturn, where do you think the Philippine Stock Exchange Index (PSEi) is?

Bear market.

Please post your questions in the Private Clients Forum if you’re my client in the Stock Signals Philippines.

Jaycee De Guzman

I am the founder and CEO of iPresence Digital Marketing, Inc. and Equilyst Analytics, Inc. At iPresence, we have been helping SMEs reach and dominate the global market through our digital marketing services since 2001. At Equilyst, we have been helping Filipinos experience a simplified and profitable stock trading and investing experience in the Philippine Stock Market since 2014.
Jaycee De Guzman

Do you have a comment?

This site uses Akismet to reduce spam. Learn how your comment data is processed.