Investors put money in gold, stocks or real estate during inflation?
Sharing at a recent talk, Mr. Bui Minh Long, Head of Portfolio Management Department of DCDS Dragon Capital Vietnam, said that investment assets must be assets that bring the best added value and must be safe. . Currently, there are safe investment channels such as savings, bonds, gold, real estate, securities… In which, Mr. Long highly appreciates the investment channel in real estate and securities.
This expert believes that gold is a temporary stable investment channel in the short term, but it should not be in the long term. Because gold only increases sharply when there is volatility.
The second investment channel is savings, which is the safest, but less attractive due to low interest rates. Therefore, those who want to have a safe and stable investment channel, instead of saving, can partially switch to investing in bonds or bond funds – relatively high safety and good yield. than.
According to Mr. Long, another very traditional investment channel is real estate. Real estate prices always increase in the long run, due to population growth and urbanization. In developed countries like Vietnam, the potential for real estate to increase a lot.
The ultimate investment channel stock or stocks. Over the past 20 years, Vietnam’s stock market has grown about 14 times and offers high yields compared to other channels. “In essence, Stocks or stocks in general represent businesses. Businesses or entrepreneurs represent a class that creates the most added value for society today. So both Even in environments such as inflation, there are conflicts, in the long-term 5 years, 10 years or 20 years, securities are still the best profitable channel”, this expert shared.
Real estate is still a safe haven channel, according to most experts. Photo: Ha Vy
According to Mr. Long, although there are many attractions, investing in stocks or real estate is not easy. When investing in real estate, it takes a lot of effort for investors to find the location, legal elements of a project, and a lot of effort to find a satisfactory property. In stocks too, investors must also look for good stocks or businesses.
Sharing recently, Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam, said that real estate has always been evaluated as a shelter channel to help reduce risks when the inflation rate is high. Even so, large bursts of inflation can also stifle economic growth and reduce demand for real estate to rent or buy.
According to Mr. Khuong, in the face of fluctuations such as wars, epidemics, and financial crisis, there are three major asset havens, namely oil, precious metals and real estate. “When the inflation rate tends to increase due to uncertainties about war, world economy – politics, financial investment in real estate is considered a solution to help preserve capital flows against risks. This helps them preserve the value of their assets, and at the same time avoids instability in other investment channels,” said Khuong.
In particular, in Vietnam, in recent years, the supply of residential real estate is very limited. People mainly invest in land, while residential real estate products including land and properties on land account for a lower proportion. Therefore, in the context of world economic and political instability, rapid inflation and tight supply, the real estate market, including the residential and commercial segments in Vietnam, is expected to increase. significantly in the coming time and is an investment channel to help reduce risks in the context of inflation.
However, the senior director of Savills also emphasized that when inflation occurs, although real estate prices increase, the market cannot afford to buy, there is no liquidity. At the same time, many investors also use financial leverage to invest in real estate, making low-liquid assets a great burden for them as well as putting pressure on the banking system.
“That’s why, I think that in today’s complicated context, it is prudent to consider carefully when using financial leverage to invest in real estate. In the next 9-12 months, some investors will Investors are forced to sell off assets because they cannot bear the pressure from financial support tools. However, the speculative nature of this group is not large, it is difficult to manipulate the market. Besides, the supply of houses in Vietnam in the coming time is still very limited, so a reduction in real estate prices is very unlikely,” said Mr. Khuong.
This expert advises investors, before deciding to put money down, investors need to pay attention to the price and legality of real estate. For investors who intend to sell real estate at this time, it is necessary to carefully consider the purpose of the money after the sale of the property. It will be reasonable if this money is invested in more effective investment channels in the context of the epidemic and international political instability.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
