BDO Securities advises investors to stick to their investment plans and not let superstitions affect their decisions as “Ghost Month” approaches. This annual observance is often linked to bad luck and is believed to influence financial markets.
John Michael Raz, the Assistant Vice President and Head of Online Sales at BDO Securities Corp., reminds us that making wise investment choices based on research, diversification, and long-term goals is essential, no matter the time of year. In August, the Philippine Stock Exchange index historically shows weakness about 60% of the time, but currently, it’s trading in the 6,350-6,750 range.
According to Raz, instead of being fearful, investors should view Ghost Month as an opportunity to find bargains. Historically, this month may be weak, but it’s a chance to buy stocks at lower prices and improve your investment cost.
Raz recommends focusing on sectors with strong growth potential, particularly the financial and power sectors, along with some select conglomerates. He explains that the financial sector benefits from healthy loan growth and improving lending margins, while the power sector is poised to gain from inelastic power demand and higher spot market prices. He also suggests considering conglomerates with consumer-centric portfolios that benefit from the country’s economic resilience.
Even in a flat or down market, Raz emphasizes that investors can still achieve decent returns. For active traders, a flat market provides opportunities to trade within a well-established range by buying near support and selling near resistance. A down market doesn’t mean zero opportunities; it just requires more selectivity in stock choices and realistic return expectations.
For long-term investors, BDO Securities offers comprehensive research coverage to help identify opportunities at bargain prices. They regularly provide guidance through articles like the Weekly Wrap and Technically Speaking, tailoring their advice to individual objectives and risk preferences.
BDO’s brokerage arm expects the index to reach 7,700 by year-end, based on an average earnings growth estimate of 15%. So, don’t let superstitions deter you from making sound investment decisions, even during Ghost Month.