Investment Strategy For The Volatile Market

Moreover the ferocious rise of the equity markets in the last two months was triggered by incessant foreign inflows. In just no time, the markets had reached an all time high due to strong FII inflows. Liquidity driven markets without the backing of strong fundamentals, could be tricky, they thought. Their banker friend also explained to them that debt markets have not cooled off and rising yields due to inflation could further stifle growth. So they decided to probe further before taking any decision given that many had burnt their hands at the bourses.

Investment strategy amid a volatile market

How to convey hard-to-understand message in the easy-to-understand way

It’s 80% investment grade. Emerging Rebound? WSJ: Emerging markets have been a bit of a disappointment this year. Do you think they’re going to bounce back next year? MR. WILLOUGHBY: We allocate 45% of our total equity exposure to international stocks.

Investment Advice for 2014

For the commodities market, oil prices may stay low in the short term because of the easing of the Middle East situation and the resumption of oil production in Iran. In regard to long-term prospects, oil prices may rise following a global economic recovery, but an increasing oil supply may limit the price level. We recommend investors be cautious about investment in oil, with a trading WTI (West Texas Intermediate) price range of US$93-$103 (Bt2,980-Bt3,300) per barrel. Gold, meanwhile, is used by investors as a hedging bet against rising inflation, but fears of QE tapering are damping concerns of higher prices.


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