The Philippine Stock Exchange Index closed at an all-time high yesterday at 3902.56. The previous high was reached on Oct. 8, 2007 when it finished at 3,873.50. What does this mean for my investments? Equity mutual fund prices are also at a high right now. That means huge paper gains for investors. Some people would be tempted to cash in, others would want to increase their investments, hoping the upward trend is going to last for years more. The important thing, I think is to not make an emotional decision. Since I am investing for the long term, I am going to stick to my plan of investing a fixed amount every month. Share prices are high right now so I'll be able to buy less shares than in previous months. On the average the prices of my shares are still going to be low by comparison.
Some news articles on the stock market's recent performance:
Philippine stock index at all-time high
Analysts and central bank: No risk of a bubble
Investing in Mutual Funds