you're reading...

August is the Dreaded Ghost Month: More on PSEI Seasonality

August is the Dreaded Ghost Month: More on PSEI Seasonality

August is the Dreaded Ghost Month. 

ghost month

source: wikipedia

In Mark T. Market’s Bernstein Seasonality and the PSEi he discussed the Bernstein methodology to figure out the bulls and the bears in a stock market. The methodology makes use of normalized stock prices and graphed to see the trends. In his analysis, the dips are in March, rally until July, dips again in August, flat in October, and then rally in December until February.For all those asking when the Ghost Month is for the Philippine Stock Market, the time when one looking for great bargains buy in dips or invest in mutual funds and UITFs – the answer may be found through understanding PSEi seasonality.

So why is August the AuGhost month?

In Den Somera’s “Dangerous Chinese ghost month” in the Philippine Daily Inquirer August 8, 2011, there is a Chinese belief that for 29 days, the gate of “Lower Realm” or hell opens and lets loose the dead spirits to wander. Hence, this is not the high time for significant events such as weddings, house constructions, business deals, and other major decisions.

Charting the PSEi Index seasonality.

Is there any truth to this in relation to the local stock market?

Maybe some other time I can verify the Berstein effect on the PSEi.
For the meantime, I graphed the PSEi from 2006 to 2012.

Please click the image to view it better.

As you can see from the graph above, the 2012 performance of the stock market index has been on the rise. 2011 seems to have defied the bear months. One interesting observation is the month of September – seems like I can propose a new ghost month. Should I wake you up when September ends?

You can verify statistics here.

What is my plan of action now?

For those who would like to “top up” on their existing equity mutual funds or UITFs, this may be a good time to do so. It’s been an endless search for a pot of gold guessing whether the market has bottomed out or not, hence regardless whether it is bottom or not, topping up on your existing funds (or opening up a new one) may be the right thing to do.

Caveat always – please invest at your own risk.

New to stocks? Other articles you might want to check out:
I’ve written a review of the PinoyInvestor stock market newsletter. Should you wish to read the article, please check out link here.
Here are some articles you might want to read:

Every Filipino deserves to be financially free.


Did you enjoy this post? Share with friends and start your journey together!

Got questions? Email krissy@moneylifeblood.net.

Still lost? Email krissy@moneylifeblood.net.

Do you want to receive more tips and strategies from me on various investments? Subscribe for free here. (You will be directed to a site to log your email address. I will not share with anyone your private contact details


P.S. Always check the latest posts at MoneyLifeBlood!

#FilipinoFinancialFreedom  #EveryFilipinoDeservesToBeFinanciallyFree                                

P.S. Do you want to have ultimate cheat guide to personal finance? Shop at IDEA SCHOOL – a learning hub to saving, investing and money making. Check out learning books, classroom seminars, online trainings, ebooks, trading guides and other resources you need. Affordably priced for all Pinoys worldwide, shop for financial education and keep learning!

P.S. Do you want to change your financial life this 2016? Get #MOVE 2016 Financial Plan Diary and move your financial life to the best life ever! To pre-order this planner, deposit Php500 to BDO Savings IDEA SCHOOL 00836004985. Regular price is Php600 come January 2016. You need a daily guide to help you become consistent, be moved this 2016!

P.S. Are you a business owner? Are you an aspiring investor? Do you wish to launch your product in platform to boost sales, get crowdfunded or become an angel investor? Check out Angelpreneur or email wealthcircle@angelpreneur.net.

P.S. Welcome to School of Personal Finance!

Every Filipino deserves to be financially free.

100 Lessons. 10 Stages. 1 Goal. 


I have a heart for people who cannot pay for seminars and are looking for free learning that is of quality. Yes, there are. You find them all in Youtube, personal finance blogs and sites.

Early this year i wrote in my goals: “To help 100 people achieve their goals” and I think via my blogs, seminars, and thru this forum all newbies will no longer be newbies.

This online personal finance school is dedicated to all my blog readers who have found me online in one way or another and are looking for resources to boost their personal finance knowledge. Study at your own pace, at your own time. No registration required. Nothing to shell out to get access.

Educate yourself today. Dedicate 5 minutes of your time each day for the next 100 days to learn about personal finance and how it can help improve your life.

Stage 1: Basic Personal Finance

Stage 2: Financial Planning Series

Stage 3: Investing 101

Stage 4: Starting a Business

Stage 5: Strategies on Investing

Stage 6: Inspiring Success Stories

Stage 7: Personal Finance Book Reviews

Stage 8: Pay it Forward

Stage 9: How to apply in real life

Stage 10: My Personal Learnings

Start your financial education today!

9cfa9-facebookJoin the Filipino Financial Freedom Forum and be with like-minded people who talk about stocks, mutual funds, UITFs, business, money management tips, trading strategies and more. Download free ebooks and resources here!Like us on Facebook!  MoneylifebloodAdd me up on Facebook! @moneylifebloodofficialblog

Wanna follow me, the financial blogger? Follow me on Twitter @moneylifeblood @krissydomingo IG @tinkerbell_krissy FB @moneylifebloodofficialblog

Visit IDEA SCHOOL and shop for financial education!