BDO's Fausto: Markets going to be less 'choppy'
MANILA, Philippines - The US Fed is scheduled to release the minutes of its July meeting later today. It is something that will greet Philippine markets tomorrow, when it reopens after a five-day long break.
The minutes will provide clues whether the Fed will begin cutting its bond buying by next month, which if confirmed, could lead to more losses for Asian shares.
Marvin Fausto, chief investment officer at Banco de Oro, said while the PSE could move in step with Asian markets' tumble, the sell-off should not be as volatile.
"If you're expecting something to happen, it's not going to scare you that much... Bernanke is very careful in what's he's trying to say or what he's saying. We already learned something a month ago, he said a little about he's thinking about cutting it and everybody got affected by it," he told ANC's Coco Alcuaz.
"So he's going to be very careful this time. He's going to be data dependent... It's not going to be as hawkish as people might think."
Fausto said markets will be less choppy because the short-term investors, the ones who are into speculative play, took profits early on after the Philippines won investment grade rating.
He said there's reason to believe more investors will come in.
"After the hedge funds are out, the long-term investors will come in. They're already looking at us, timing it very well," Fausto said.
Asked to give advice for investors, Fausto said they should not wait too long to jump in the market.
"I think he should not wait too long. This opportunity is already looking at you. You don't buy the market when it's up. You buy the market when it's low, when there's a storm. After the storm, what happens, the sun comes out," he said. - ANC