Ghost month already started and as we always see, the stock market is down and maybe go down further. This always happens not only on the Philippine stock market but in other investments too. Many believed, especially Chinese people that it is not wise to invest money in this season because it will not bring you luck and fortune.
On the other side, other believe that times like this are the best time to buy shares of your favorite blue chips stocks because they are on sale. Let’s see why it is called ghost month and how it affects the stock market.
What is ghost month?
In Chinese culture, the fifteenth day of the seventh month in the lunar calendar is called Ghost Day and the seventh month, in general, is regarded as the Ghost Month, in which ghosts and spirits, including those of the deceased ancestors, come out from the lower realm(wikipedia).
Ghost Month 2017
According to ChineseNewYearDay Chinese Ghost Month, this year is from August 22, 2017, to September 19, 2017 and Chinese Ghost Festival is on September 5, 2017.
Since Chinese culture has a strong and wide influence in many people especially to Filipinos, this culture seems to be followed by most of the investors in the Philippines. Many Filipino investors and businessmen are “taking break” and getting lie low from investing and other related investment like the stock market.
Less demand and more people pulling out money on the stock market creates a down trend and causing the stock market to go “red“. While this doesn’t happen every time, most of the time it does.
Please also take note that there are many other factors that can cause stock market to go down trend. Ghost month or not it can happen. External factors like foreign market collapse (like what we have right now), global crisis, government issues and many more can cause Philippine stock market to go down.
Other taboos during the Chinese Ghost Month
- No wedding
- Don’t purchase new home
- Don’t move to new house
- Don’t hang clothes outside during the night
- Don’t open an umbrella indoor
- Don’t swim during the night
- Don’t camp outdoor during the Night
- Don’t use the mirror midnight
- Don’t whistle on the quiet street at night
- Avoid traveling
- Don’t pick up coins or money on the street
- Don’t peel apple and light up white candle in the front of mirror
- Don’t do the surgery
- Don’t insert chopsticks into the rice in a bowel.
How can you benefit from the Ghost Month?
If you’re a long term investor, this might be the chance and best time to add shares or “average down” in your portfolio. Most of the blue chip stocks are “on sale” and discounted price. Seasoned investors already know what to do and they have their “spare cash” ready to accumulate shares of their favorite stocks.
Actually, this is one of their favorite times in investing in the stock market. While other people are buying sales on malls and department stores, “intelligent investors” are shopping in the stock market.
If you’re a beginner like many of us, you might be scared or nervous in times like this. Don’t! This is normal. Reading this article could somehow provide you information why this is happening.
Read the beginners feeling when the stock market is down article here to see some tips on what to do.
This might a good chance for others but sure it’s not for everyone. Different people have diffent perspective and investment goals. And while you can take advantage of this ghost month to accumulate shares, you should always do your due diligence and assess your financial or investing goals.
Always remember that investing in knowledge and in yourself is the best investment you could ever have.