Why I Disagree with Bank of America’s Bearish Sentiment Towards Emerging Markets (particularly the Philippines)

Why I Disagree with Bank of America's Bearish Sentiment Towards Emerging Markets (particularly the Philippines)

As of Tuesday trading, US stock exchanges closed in the red zone except for NASDAQ, which is up by 11.31 points as of the time of writing this. Meanwhile, European stocks recovered from Monday’s rally. Asian exchanges, on the other hand, had a mixed sentiment with Nikkei 225 and Topix Index closing with a red day change, while Hang Seng, CSI 300, and S&P/ASX 200 made it just a few points above the red territory.

While David Woo of the Bank of America said that he wouldn’t touch emerging markets with a 10-foot pole and despite the exposition of investment risks in the Philippine stock market by Bloomberg (see image below), I see compelling reasons to be a contrarian of his sentiment on EMs.

We got some fundamentally sound companies listed on the Philippine Stock Exchange that are relatively undervalued compared to their peers in their respective sector.

My technical analysis also approves the idea of consistently topping up on these select stocks on a regular basis (make it monthly if possible). This is my long-term POV.

There are 16 stocks that passed my filter for long-term investing. Are you an EquiPicks subscriber? I ask you to read Newsletters Vol 1 Nos 25 to 30. It’s an update on what we see on these 16 stocks in as far as their financial reports are concerned.

If you would want to play with the intraday volatility of speculative stocks, take a look at our Short-term Trading watchlist.

EquiPicks subscribers can find these two watchlists as soon as you log in to your account.

Jaycee De Guzman

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