Hot start

Wall Street roared in the opening day of this week’s trading gaining over 400 points. Positive news from Asian and European markets earlier in the day boosted investor confidence. This should be a nice follow-up to last week’s 4.8 percent overall gain.

Bargain hunting seems to be the buzzword of the day as investors continue to scramble for undervalued shares. Reaction from investment guru Warren Buffett about ‘be fearful when others are greedy and be greedy when others are fearful’ certainly made others take another look at equities. After all, the Oracle from Omaha made millions from making the same unorthodox decisions especially during a bear market.

The weekend also saw Dutch and South Korean governments infuse public money to salvage their respective flagging financial sector. Here at home, investment bank Merrill Lynch predicts the Monetary Board of the Bangko Sentral ng Pilipinas will cut overnight lending rates by 25 basis points when it meets at the end of the month. The BSP has tightened borrowing rates since June when inflation numbers hit staggering levels this year.