2023 stock market new trends

DNHN - Dr Dinh The Hien, an economist, noticed the new trend in the stock market in 2023 and noted that investing in the foundation will take precedence over surfing.

According to Dr Dinh The Hien, an economist, many predictions for the end of 2022 include the market plunging sharply but recovering eventually. This is caused by a variety of factors, including cost.

The stock market had significant growth in 2017 when compared to the years 2017 to 2018. Many individuals at the time anticipated that the VN-Index would increase to 1,500 points. But by 2018, the stock market had taken a sharp turn. What does this circumstance suggest?

Dr Hien recognized that the pricing issue must also be taken into consideration when evaluating a stock market. Although there are growing prospects for the stock market in 2022, an investment asset must be connected to a price. In theory, a correction and sufficient accumulation are required when a price grows significantly before it may rise further.

When the stock market's reflection of the actual economy has a significant lag, people frequently label it as less than ideal. Accordingly, it takes the stock market around six months to correctly represent the direction of the actual economy. The group of markets with this attribute includes Vietnam.

The stock market rose rapidly in 2021 despite the economy experiencing significant challenges as a result of the pandemic. When the economy recovers in 2022, it will fall quickly, with the stock market looking quite similar to that of 2018.

Currently, the stock market is adjusting to a respectable level and further preparing for the possibility of 2023 since the price growth is not based on the actual economy.

Dr Hien predicts that the market will present an opportunity in 2023: "The first is the chance presented by the restoration of a more open stock market. The market will have a stronger basis and investment prospects based on the background study of the firm after the capital push and inflated information are managed."

"When the market favours surfing in 2021, investors who rely on background investigation and numerous high-quality companies don't seem to have a chance, but they will have more possibilities in 2023," Dr Hien added.

Dr Hien accepted the changing trend of the stock market in 2023 by saying that he would increase his platform investments rather than emphasizing surfing anymore. Investor value will be safeguarded as a result. Platform investors will lose money as a result of fewer shocks and subsequent significant dips in the market, but in 2023 the market will expand more steadily.

We may anticipate that the market will see an average rise of roughly 15% in 2023 if the market adjusts at 1,100–1,200 points in 2022. This level of profitability can be considered to be good in comparison to bank interest rates, although it is not anticipated to be as high as in 2017 or 2021.

Additionally, after the government decided to participate in the market, it stopped investing money and instead encouraged entrepreneurship and output. The fact that financial flow is diverted away from real estate and toward business and production also contributes to a rise in employment. FDI inflows to Vietnam have also increased significantly. Large technological companies have recently declared ambitions to invest in Vietnam.

According to Dr Hien, "the developed economy also helps the majority of employees' income and spending improve, which is a healthy basis to support the economic market and also the stock market, which we can observe."

Additionally, tourism will not be a major contributor in 2021 or 2022. When it increases by at least 50% from 2019 levels, foreign tourism will bring in roughly 9 million people, giving the economy a fresh boost.

In terms of macroeconomic stability, Vietnam is performing well when compared to the rest of the globe. Numerous foreign analysts predict that Vietnam's economy would rise by 6.5% in 2023 and 7.5% this year.

seasoned Dinh According to Hien's assessment, Vietnam is also doing a great job of managing its inflation and exchange rate policies. As a result, the economy will not be as negatively impacted as it is in some other nations, and the stock market will undoubtedly contribute to economic growth.

P.V