Guidelines for investing in the stock market – bond market and foreign currency investment in 2024 from Morning Star Thailand
Morning Star Thailand has published an analysis. For investment opportunities in the stock market bond market and investing in foreign currencies in 2024. Today we have summarized important points for everyone. As a guideline to create better returns this year.
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Stock market investment opportunities 2024
Consider that investing in certain industries in some countries Will give better returns than the overall market. Therefore, we give advice to groups of interest as follows:
1. Small stocks: Because the price has dropped quite a lot. Currently, the market value is still lower than it should be. It is recommended to focus on investing in companies with good quality. To reduce fluctuations according to the highly sensitive economic situation.
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2. Banking, communications, healthcare, and public utilities stocks: These are industries worth investing in. Because in the past, bank stock prices were affected by higher market interest rates. and the banking crisis in the United States It is believed that the stock price has already reflected these risks to a large extent. Utilities and health stocks That is interesting because the price level has come down a lot. Including the communications group, although the stock price level has not decreased in the past. But it is expected to still provide good returns. and help manage risk for investment portfolios
3. The UK stock market, emerging markets and Chinese technology stocks: Although very volatile, they are attractive investments. With the trading price still low, there is a high upside return.
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4. Invest in US companies that take advantage of AI technology: the stock prices of these companies are still at investment levels And there is a chance that profits will increase in the future. From the development of products and services as well as improving business efficiency
In this regard, the overall value of the stock market is currently considered to be at an attractive level for investment. After previously decreasing due to concerns about various matters. Even the US stock market That was driven by a few stocks like the “Magnificent Seven,” but there are still other stocks that are interesting, especially small-cap US stocks.
Debt investment opportunities 2024
While debt instruments, it is recommended to invest in government bonds the most. and invest in foreign currencies instead of US dollars. It is summarized as follows:
1. Invest in instruments with positive real returns: such as debt instruments in developed countries. This is because interest rates have increased significantly. Especially short-dated debt instruments that still give higher returns than long-dated debt instruments (Inverted yield curve), investing in Mortgage-backed securities because interest rates on loans in the real estate sector are at a very high level and the price level is attractive, investment in debt instruments from emerging countries Because it provides high returns from interest rates and currency values. and investment in Inflation-linked bonds
2. Invest in short-term debt instruments: as they currently provide higher rates of return than long-term instruments. Or is in an Inverted yield curve condition, but there is a risk of having to reinvest and may receive a return that is less than before. Due to the trend of lower interest rates in the future. This is different from investing in long-term instruments that can lock in specified returns for a longer period.
3. Give more weight to investing in government instruments: Even though private debt instruments provide higher returns. However, due to the difference in return rates of government and private sector instruments starting to narrow from the previous period (Credit spreads).
Things to focus on It is investment portfolio management by generating additional income from investing in debt instruments without risk of default. Including caution when investing in debt instruments with long durations, which are quite volatile in line with the central bank’s financial direction and inflation.
Currency management guidelines 2024
Even the US dollar It will be like a good investment during a bad economy. But its current value is becoming more expensive compared to other currencies, so finding opportunities to invest in currencies other than the US dollar has become more attractive.
For example, invest in Japanese yen. In addition to helping to diversify risk in your investment portfolio. It also protects investments during times of economic fluctuation or very bad markets. And there is also the opportunity for a higher return on investment in the future.
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2024-01-06 04:17:24
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