Investment Strategy Report - AprilÂÂÂÂÂ 2019: Cash is King!
At the end of last month, the market is focused on the fact that 3 months yielding more than 10 years. This is a predictor of a recession, which could happen in next 6 months to 24 months according to historical data.
We think a recession is unlikely in 2019. However, 2020 could be a year where economic numbers start really to show a slowdown. The US economy is running at full capacity. Globally, rate of growth have peaked in Europe and China. The latter is important because it has been the one driving marginal growth for a number of years. China has shown signs of slowing down. Even taking into account the Chinese New Year effects, economic data has been low this year.
In that context, we think investors should have a more cautious approach when investing in the equity market at this time.
In the past, AGM season usually does not have much influence on the market. In fact, market usually rally in the beginning of the year, and faced correction around April-May (with 2016 being the only exception)
Q1 earnings season will take place in May. The result of the trade negotiation between US – China, and OPEC meeting is scheduled in June. So besides AGM, not much to hope for in April. We expect VN-Index to fluctuate around 940-995 points. We suggest investor to keep a good portion of cash and wait for opportunity to buy at a more attractive price.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.