It is important to know what is going on in the world, so let me share some news headlines with you from the past few days.
“Latin American countries say they won’t recognize Nicolas Maduro as Venezuela’s president.” The bus driver-turned-president has been battling world opinion for years. But with over 2 million Venezuelans running into bordering nations to escape economic Armageddon, he could not expect much support from his neighbors.
“Government shutdown now the longest in US history at 22 days.” This is nothing new and has been a recent trend. When the US president and the US Congress cannot agree on how to spend the taxpayers’ money, both sides shut down the government and go on a short vacation. Regular government employees suffer, but elected officials really do not care.
“French MPs face unprecedented death threats from ‘Yellow Vest’ protesters.” “People Power” protests in foreign countries do not have the sense of civility usually found in the Philippines. Here protestors burn paper mâché effigies. In France they burn cars.
“Weakest Treasuries Demand Since 2008 Sends Bond-Market Warning” and “Danger looming in corporate bond market.” That is not a problem. Bonds go down, and the stock market goes up. That is the way it has always worked according to the experts. “Slowing earnings growth, gloomy forecasts add to stock market’s woes.” Maybe we need to get a new group of experts to listen to.
“Germany flirts with recession.” Germany’s economy went negative in the third quarter of 2018. If the fourth quarter is also negative, Europe’s “economic engine” will be out of gas. Maybe other countries can pick up the slack in Europe. Or maybe not. “Italy is Europe’s ticking ‘TIME BOMB.’”
However, we all know from the experience of seeing how the global economy functions—since the 2008 debt crisis—that there is always one source of good news we can depend on. Except unfortunately, this time, “Clouds loom over global business as Chinese economy falters.”
“The Jeff Bezos divorce: $136-billion and Amazon in the middle.” How many times have you been told that money cannot buy love? Apparently Mrs. Bezos made the greatest investment in history. She “bought” Mr. Bezos at the “low” and is now selling out at the “high.”
And yet one more headline: “Philippine Stocks Are the World’s Best Performers Right Now.”
The two current concerns of note in the Philippines are the Hanjin Heavy Industries and Construction Philippines bankruptcy and the loss/theft of personal passport data from the Department of Foreign Affairs. These are both important. However, the lasting effect is not known at this time. Further, neither is necessarily going to be critical in the bigger picture.
Also, we have entered the election season. Already I am thinking about stocking the liquor cabinet because Philippine elections are usually easier to handle after a shot or two. Philippine elections are like the mythical college fraternity “Toga Party” that everyone has heard of but no one has actually attended. One attendee is hoping to get “lucky.” Another will probably get drunk and fall down the stairs. Yet another will get drunk and be lucky by falling asleep on the floor.
From now until May 14, everything will have a political agenda. However, given a choice of where to put your money for profit, who are you going to call?
Local and foreign money has been flowing into the Philippine stock market since day one of 2019. While the stock market is not indicative of anything more than stock prices, money is never wrong. It always goes where there is at least the best potential of profit.
****
E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.