This year bull continues to dominate the Indian stock market. However, it warned all investors against exhausting their funds or buying aggressively at lofty prices in order to get opportunities to load up during market corrections.
It is seen that the corporate earnings have grown by at least 10 percent this year, in turn seen to support the rise of the Philippine Stock Exchange index to about 9 percent up from last year’s finish. This could be considered as the potential new record high for the PSEi. Analysts are suggesting that if you are a fund manager then now is not the time to be overweight in the market. It is recommended to keep a little money in cash and wait for the markets to correct to buy more aggressively.
It is believed that the overweight position leads to the loading up of more stocks in excess of the allocation prescribed by a benchmark index, typically the MSCI. As per the analysts, if investors are overly positive, then the market would also be more sensitive to negative surprises. In market, there will be corrections but they will just be corrections. This never implies that the bull market will not continue.
However, necessary pullbacks may be expected as these reactions may urge rollbacks of 5 to 10 percent, according to some analysts. These pullbacks may propose better buying options for traders in future. Maybe this time, the country would hit the 7-9 percent yearly growth rate as in 2017, a resilient BPO sector earning was $25 billion a year and overseas remittances was found hitting $27 billion. The tax reform program will also allow the government to boost its infrastructure spending. Significant risks to watch for would be the execution of the tax reform program, potential upside surprise in inflation and expensive valuations, according to few analysts.
This year’s favored sectors are property, gaming and consumer-related stocks, particularly retail and restaurants. On the financial sector also, it is positive. Expected top stock picks are Ayala Land, Megaworld Corp., Bloomberry Resorts, D&L Industries, Shakey’s Asia Pizza Ventures, Metropolitan Bank & Trust Co., Semirara Mining & Power Corp., Aboitiz Power and Ayala Corp.
to gather more information regarding the top stock picks you can get in touch with the technical analysts of Money Classic Research, which is a leading financial advisory firm that embraces experienced analysts, who are capable of providing accurate stock market tips.