In stock investment 2024, investors are like wise warriors, needing good strategies of defense and counterattack. Faced with the volatility of the global market, defense becomes important, with the use of stoploss to protect capital and stay safe from potential risks. However, like a sophisticated warrior, they also need a counterattack strategy, focusing on stocks with long-term growth and profit potential. A flexible combination of defense and counterattack will help investors steadily overcome all challenges in this challenging journey.
1. Looking back at the Vietnamese stock market in 2023
Assessment of the economic situation and stock market 2023, we can see occasional fluctuations and skepticism in the market. However, these fluctuations also create significant profit opportunities for investors who monitor the changes in indices and stocks. 2023 is a year marked by continuous changes in the Government's economic policy. Many measures and regulations are introduced to manage the economy, reducing risks due to the impact of the world economic situation. This has created positive momentum for the stock market.
VNINDEX Index 2023 has gone through a volatile period during the year, reflecting the flexibility of the market. The sharp increase from the beginning of the year to October 2023, with an increase of 24.09%, reflects investor optimism. However, the sharp decrease from October to the end of the year, with a decrease of 18.6%, is also a challenge for the market.
The growth of the VNINDEX 12.3% at the end of 2023 did not fully reflect the increase in stock prices, especially in the securities and real estate sectors. These sectors have attracted special investment flows and benefited from the Government's support policies, playing an important role in the market recovery.
For those stock investor 2023 bring good opportunities to gain profits, especially when choosing to invest in trends and closely monitor market fluctuations. The Vietnamese stock market this year seems to have flexibly adapted to global fluctuations and is continuing to develop in the difficult context of the world economy.
2. Global economic situation in 2024
The world and Vietnam in 2024 still face many risks and challenges. First of all, the Russia-Ukraine war continues to be a factor threatening global stability, creating an uncertain picture of the future. The instability in the Middle East also contributes to the world's uncertainty, while the economic crisis in some European countries continues to be a dark spot for the global outlook.
In addition, the US Federal Reserve's (FED) policy on interest rate management and oil price fluctuations are also important factors affecting the world economy as well as the Vietnamese economy. Fluctuations in the oil market and interest rate decisions can create waves of simultaneous impacts on countries, posing challenges for management and adaptation of countries around the world.
On the domestic front, the Vietnamese government has demonstrated consistency in managing the economy. New measures and regulations have been introduced to reduce difficulties for businesses and create a more open and healthy competitive environment. Stock market also underwent a purification process, with the pilot implementation of the KRX system, to improve the quality and efficiency of the Vietnamese stock market. The goal is to upgrade the level of the market, increasing the attractiveness and reliability from investors.
3. Time to invest in stocks 2024
The year 2024 marks a pivotal period full of challenges and opportunities for Vietnam Securities. In the global market, investors face uncertainties as the Russia-Ukraine war continues and creates instability in the Middle East. Furthermore, the economic crisis in some European countries continues to impact the recovery of the world economy. At the same time, the US Federal Reserve's (FED) policy on interest rates and fluctuations in oil prices also play an important role in shaping market trends.
In Vietnam, the picture stock investment 2024 equally complex and requires sensitivity from investors. The government has shown consistency in managing the economy, applying many new measures and regulations to facilitate businesses, thereby creating a healthier competitive environment.
With both positive and negative aspects of the market, the time to invest in stocks in 2024 poses many great challenges. The stock market trend is still risky, and its change can create a new downtrend to create a long-term bottom. Therefore, a reasonable investment strategy is to focus on technical signals from the market and stocks. Identifying the medium-term uptrend will be the key to deciding the process of buying and holding stocks.
- TREND: With the potential risks in the stock market and the possibility of a new downtrend to form a long-term bottom due to the impact of the world situation, a reasonable investment strategy is to focus on the technical signals of the market and stocks. Confirming the medium-term uptrend is important to decide to buy and hold stocks.
- ALLOCATION PROPORTION: For capital allocation ratio, it is recommended to use about 30-50% capital and set clear stoploss points to manage risks. This helps protect investment capital and stay safe in volatile market conditions.
- STRATEGY: The buy and hold strategy should be implemented until the market and stocks end their medium-term uptrend and confirm a correction phase. For stocks with long-term growth potential, it may not be necessary to take all profits, but just reduce the proportion of stocks to a low level to preserve profits.
- BOTTOM TIME: When the correction phase ends, the market is likely to form a long-term bottom because the risks have been priced in during the previous correction phase. At this point, it is possible to buy full positions and hold the stock for a long-term increase phase, which may last until 2026.
- STOCKS THAT MAY BE INTERESTING: In selecting stocks, you can focus on investing in sectors such as Public Investment (VCG, HHV), Oil and Gas (PVD, PVB, PVS), Real Estate (NLG, KDH), Agriculture (DBC, HAG), where cash flow can find good opportunities and long-term growth potential. It is necessary to conduct thorough research and closely monitor charts and indicators to make informed and accurate investment decisions.
4. Defensive and counter-attack methods in stock investment 2024
Positive macroeconomic signs mark 2024, creating great expectations from financial investors. However, with every volatile period, the risk of uncertainty is always latent, requiring the construction of a strong investment portfolio to protect the achieved success. In this context, positive macroeconomic signals have created excitement for investors in 2024. Many experts predict changes in monetary policy of major economies such as the US and Europe, while Vietnam maintains a stable macroeconomic balance.
At the discussion “What to invest in 2024?” of the Vietnam Financial Advisors Community (VWA), CEO of AFA Capital, Nguyen Minh Tuan, emphasized that despite having faith in positive policies, investors need to be cautious about the potential risks that the world is facing. Building a quality and solid investment portfolio becomes the key to protecting the results. In this challenging journey, investors need flexibility between defense and counterattack. It is necessary to build an asset class with different defensive and growth characteristics. This helps investors proactively and flexibly shift, achieving the greatest investment performance in the context of market fluctuations.
In investment strategy, buy good stocks play an important role, especially in sectors that benefit from stable macroeconomic balances. Sectors such as construction, textiles, technology and energy are considered to have high growth potential. In contrast, real estate and banking may face challenges.
Meanwhile, bonds, despite the light that comes with low interest rates, are still considered an important defensive asset class. Bond funds have recorded positive growth, providing a safe haven in times of bond market anxiety.
VIS Rating CEO Tran Le Minh emphasized the importance of not being too optimistic about positive signs. Investors need to control and be cautious, preserve and protect the achievements in 2023 by building a quality investment portfolio. Responding quickly when new opportunities arise is the key to boosting growth, instead of being infatuated with short-term economic prospects.
In short, 2024 calls for a flexible mix of defense and offense in your investment journey. Stocks and bonds both have an important role to play, with portfolio diversification providing stability and safety from unpredictable market fluctuations.
Source: Onstocks
