in the philippines our money supply is very low because of low export and slow money remittance from overseas worker…so inflation rate this is low last september, so interest rate follow down… capital market and infrastructure start investing because of low interst rate, stock market goes up …
this fouth quarter remittance will go up,money supply will get bigger
my question is, what will happen to stock market?
does it will continue to grow?
Sang Suci 9:02 am on June 24, 2010
Increasing money supply is not equal to rising stock market. There are many substitutions for stock market e.g. real estate, foreign stock market, etc.
Whether stock market will keep going up depend on the relative yield. If the rental yield is higher than the dividend yield, chances are, people will stop putting money to stock and start pouring money into real estate.
bizzbagg 9:02 am on June 24, 2010
i think so but watch out for inflation.