What should investors do when the market shows positive macro signals?

Dr. Nguyen Hoang Nam (Dean of the Faculty of Social Sciences, Dai Nam University) will share more views on this issue.

Positive macro indicator

firstGDP in the first quarter of Vietnam grew by 5.03% over the same period last year, higher than the growth rate of 4.72% in the first quarter of 2021 and 3.66% in the first quarter of 2020. This is a possible figure. showing the strong recovery speed of Vietnam’s economy.

SecondCredit growth in the first quarter was quite positive at 5.04%, much higher than the same period in 2021 (2.16%), demonstrating the higher permeability of the economy, creating a good momentum for the business cycle. next business period.

TuesdayRealized investment capital of the whole society in the first quarter at current prices reached VND 562.2 trillion, up 8.9% over the same period in 2021. This is also a positive signal in capital mobilization and use. investment, is a very important driving force contributing to the economic growth rate of the whole year 2022.

Wednesdaythe Government operates policies very flexibly and closely follows market developments:

The State Bank of Vietnam has started to make a decision to slightly raise interest rates. The net injection on OMO is very flexible (at the time of net selling, at the time of buying). Therefore, although the inflation rate for the whole year may slip out of the 4% frame, inflation due to excess money supply will almost certainly not happen.

The government has directed the authorities at all levels to be more aggressive with the phenomenon of real estate speculation. In particular, some provinces and cities have banned subdivision and sale of plots; resolutely impose heavy penalties on the phenomenon of voluntary conversion from agricultural land to residential land, return of tax returns when the price is low, etc.

The Government has also clearly shown its determination to make the stock market healthy, and minimize manipulation through drastic review and investigation actions.

Along with that, a number of commercial banks have tightened the room for real estate credit, which will reduce the inflow of money, contributing to handling the waves in this market.

Rational investors should stay in the stock market

According to Dr. Nguyen Hoang Nam, the wave of real estate tends to decrease in amplitude, so if investors jump into this market, they will face the risk of being bruised by the last wave.

Meanwhile, the price of gold is uncertain, the rhythm of ups and downs has no trend, increasingly out of tune with the world gold market. In addition, the exchange rate is under strict and strict control by the state and has long been no longer an attractive investment channel.

These are very positive and clear signs that make more and more investors decide to stay in the stock market or transfer cash to the bank. Quarterly market deposit balance, increased by 4.03% over the same period last year. This shows that individual customers are more cautious with investment decisions and waiting for other investment opportunities.

What should F0 investors do during this period?

Agreeing with the opinions of many experts, Dr. Nguyen Hoang Nam said: “In 2022, it will not be easy for investors to make a profit on the stock market like in 2021. However, the stock market will still grow and more importantly, grow in expectation, not growth. must be growth in fear.”

On April 4, 2022 VN Index set a new peak of 1,530.47 points. The question is how should F0 investors behave appropriately during this period.

According to Dr. Nguyen Hoang Nam, the most important thing for new investors is to avoid common psychological traps:

first, F0 investors should restructure their investments. If you are suffering losses, do not be too shy and worried, boldly cut your losses. Absolutely do not let regret affect future investment decisions. Think of a loss today as a profit in the future. Meanwhile, if you are making a profit, consider what are the value stocks to hold for the long term, and which are flashy stocks (stocks with market price > intrinsic value) that you can consider selling. take profit. Keeping to the top is an impossible task for new investors.

Second, F0 investors should also try to avoid “bubble vision”. It is understood that there is too much information coming from many channels with investors. It is necessary to distinguish what is real information and what is noise. In the market, sometimes there are stocks that achieve strong fluctuations in price but do not come from internal and sustainable reasons, but occur due to the cash flow of speculators, which still account for a high proportion, and trading. “noise” increases the demand force.

TuesdayInvestors need to practice discipline and coolness when making investment decisions. Instead of asking what code to buy, how much does it cost, ask why buy this code? How does the scenario adapt to market fluctuations, that is, to prepare the selling price in both profit and loss cases as soon as a buy order is placed. In case of loss, new investors should not anchor in the belief that the stock price they are holding will increase, this is the main cause of large losses, even loss.

According to Dr. Nguyen Hoang Nam (Dean of the Faculty of Social Sciences, Dai Nam University)

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