If inflation escalates, which stocks to buy to avoid “storm”?

Recent geopolitical tensions are pushing up energy and commodity prices, causing huge inflation concerns around the world and also in Vietnam.

Making comments at the seminar “Escalation of War – Prepare to Respond”, experts all agreed that the stock market is still an attractive investment channel in the context of rising inflation. According to experts’ analysis, despite many difficulties in the macro situation, the profits of large enterprises on the floor still recorded an impressive growth of about 20%. GDP is also forecast to be higher than last year when reaching around 6%.

The negative news makes the market fluctuate in the short term, but in the medium term, the stock can still go up thanks to many positive prospects. In particular, short-term fluctuations are also an opportunity to adjust stock prices in the market to a balanced and suitable level for long-term investment. Accordingly, experts forecast that VN-Index can still grow about 15-18% in 2022.

According to Mr. Nguyen Minh Quy, Chairman of Novaon Capital Investment Fund, investors may face difficulties in investing when VN-Index has mostly moved sideways in a narrow range in the past month. However, compared with the US and European countries, the decrease is not significant. Thus, it can be seen that the resistance of the Vietnamese financial market is quite high, investors can fully expect the market to go up when geopolitical tensions cool down plus a catalyst for business results. outlook in the first quarter of 2022.

Sharing from the perspective of a value investor, Mr. Nguyen Minh Quy said that he is not too concerned about the “red and green” movements of the market every day. However, in times of market volatility, it is necessary to observe closely to seize opportunities. Because each market correction is a golden opportunity to collect good stocks at attractive discount prices.

Agreeing with the above view, Mr. Hoang Cong Tuan, Head of Macro Research Department of MB Securities Joint Stock Company (MBS) also said that in order to make profits from stocks, it is necessary to have a vision ahead of other investors. When the political situation is unstable and many investors panic, it is a good opportunity to buy stocks.

In the context of escalating inflation, it is often followed by a sharp increase in commodity prices, especially sensitive such as oil prices, metal prices or agricultural commodity prices. Therefore, experts believe that it is reasonable to invest in businesses that are manufacturing and trading in goods with the expectation of price increases in the inflationary environment in the short term.

Specifically, the stocks in the group Energy, Steel, Rice and Ports suitable for short-term investment due to the benefits of many positive macro factors. The fact that commodity prices have not been able to cool down is a supporting factor for the uptrend of this group in the next 3 months.

From a medium-term perspective, Real Estate, Securities, Retail, Banking are potential industry groups that can be held in the next 1 year.

As for the Real Estate group, the expert said that the prospect of this group will come from the dual expectations from the promotion of public investment and a series of real estate segments that are forecast to increase sharply. In particular, industrial park real estate stocks forecast a lot of potential when the supply and demand of industrial park real estate in key economic regions increases and the outlook is positive for industrial production.

For the Securities group, this group of stocks is also forecast to grow, although the momentum is not as strong as in 2021. Besides the number of new investors opening will continue to increase, this group is expected by the outlook. business remained positive in 2022 compared to a fairly high base in the previous year.

The retail group is also evaluated positively, but due to high consumer demand after 1 year of being affected by Covid, however, there will be a division within the industry and opportunities will come to businesses with high demand. profit growth in 2021 is lower than the industry average.

According to Minh Phuong

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