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Long-term investors can make killing in stocks: expert
Stocks remain attractive in the long term, a Ho Chi Minh City-based financial analyst has said.
“Bearish markets offer value investors big gains over a horizon of one year and above,” Dinh The Hien, the director of the Institute of Informatics and Applied Economic Research, said.
“The period from now to the first quarter next year is the best time for investors to buy shares, which will give them big returns in one or two years.”
Hien noted investors have recently overreacted to the market’s falls, selling off shares sharply. “There are now many profitable opportunities on the stock market which has fallen to nearly 300 points.
“Many well-run listed firms have become very cheap and many companies have announced high dividend payouts, much higher than bank deposit interest rates.”
Hien also said investors are now opting for shares that have fallen below their book value. “They expect those shares to bounce back the strongest when the market recovers.
The market would definitely recover strongly in the next year or two, Hien said, adding when that would happen depends on the US economy.
“I foresee two scenarios,” he told Thanh Nien.
“If the US economy recovers in the third quarter next year, there will be huge investment from that country coming into Vietnam. Then, the Vietnamese stock market will rally sharply in the fourth quarter.
“The other [scenario] is that the domestic market will be bullish in the third quarter of 2010 if the US economy rallies in the first quarter.”
Hien also said investors who start buying shares of well-run companies now would get astounding returns.
Nguyen Khanh
Thanh nien
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