Earlier this week, both global and domestic financial markets reacted negatively due to the Covid-19 outbreak. The global stock market plummeted, oil price also dropped by 30 percent to only $30/barrel. The crypto currency market has had a fiery day when evaporating nearly $45 billion, with most of the major crypto currencies falling by 10-15%. Widespread instability led to an official eight-year high of gold price, surpassing $1.7/ounce before turning down to $1.67/ounce.
Reacting to the world market, at the beginning of this week, the domestic stock market dropped by over six percent, gold price soared to over 48.2 million dong per tael, then dropped to over 47 million dong. The US dollar price and crypto currencies in the domestic market also went down.
Many financial experts believe in the context that most investment channels are precarious, choosing which channels to invest in is extremely difficult.
Specifically, real estate, after a period of hot rise, has levelled off, but prices are still high, continuing to be returned to real value. The segment of resort real estate used to have a fever, it is now facing great difficulties due to the epidemic. Stocks plummeted and investors were advised to be more prudent, especially for blue-chip stocks. The derivatives market and crypto currencies are as risky as gambling. The exchange rate has low volatility. Corporate bonds have become precarious as a series of issuers are having trouble because of Covid-19. Gold is likely to grow the largest to a record high of eight years but it may decline anytime.
Talking to reporters of the Investment Review, Phan Dung Khanh, director of Investment Consulting of Maybank Kim Eng Securities Company (MBKE), said that in the current unstable global environment, the investment tended to flow into safe assets. However, in Vietnam, gold investment is difficult to be rich.
Still holding the view to diversify investment portfolios, Nguyen Tri Hieu, an economist, said that gold and savings were the two best investment channels at present. In addition, according to TS. Hieu, investors could put capital into a number of real estate projects to meet real needs.
Gold expert Tran Thanh Hai also said that gold was likely to increase, if the Covid-19 epidemic spreaded, the global economy was in danger of decline. However, the expert warned that if a country invented a vaccine to prevent the epidemic, the price of gold would plummet. Therefore, investing gold at this time is quite risky.
Talking to reporters of the Investment Review, many gold companies also said that gold prices were vibrant, but the trading was quiet.
Some investors say that the decline in the market for crypto currencies, stocks or derivatives markets are also an opportunity to buy, but this market is only suitable for investors with strong psychology, because the market still has the ability to continue to plummet.
Particularly for the stock market, Phan Dung Khanh said that investors should not invest in bank stocks and blue-chip stocks.
“Many people think that bank stocks are still attractive, but I think that bank stocks have risen for a long time and the risks are very high. For the time being, in my opinion, investors should not buy blue-chip and bank stocks (because they are likely to take profits if the market is bad). Investors with good psychology, experience, and risk appetise can participate in short-term penny stocks and derivatives market. Furthermore, investors who want to be safe can use derivative stocks to hedge risks and keep a large amount of cash to prepare for upcoming investment opportunities,” Khanh said.
