Stocks in free fall from historical peak: Should you sell or buy stocks?

Commenting on yesterday's strong correction, Mr. Dang Tran Phuc, Chairman of the Board of Directors of AZfin Vietnam JSC, said that it was a normal development because the market would naturally decrease if it went too high.

However, according to Mr. Phuc, the current macro signals are still bright. In particular, information on US tariffs, public investment, money supply, interest rates, inflation, GDP growth... are all positive. In addition, the business results announced in the second quarter of many enterprises also show positivity.

“Therefore, the developments on July 29 should be understood as an adjustment to balance the market, not a sharp decline,” said Mr. Phuc.

Meanwhile, expert Nguyen The Minh, Director of Research and Development for Individual Clients at Yuanta Vietnam Securities, predicted that in the short term, the stock market's downward trend may continue.

Stocks plummet, investors are advised not to chase the market. (Illustration photo)

“In today’s session, July 30, and the following sessions, the index may return to 1,450 points, and then recover slightly. In the short term, this risk will still exist because investors’ profit-taking psychology continues. Or many people are also afraid that stocks will fall further, so they increase selling, causing the market to not stop falling,” Mr. Minh analyzed.

Should I sell or buy stocks?

Faced with a possible downward trend, Mr. Phuc said that at this time, investors should prepare money and focus on positive stocks with prospects for the end of the year to buy.

“Investors should buy when the market drops dramatically. The groups of stocks that can be invested in are: Industrial real estate stocks, because in reality, when the tariff policy is quite clear, it does not affect foreign investors.

The second group is the group that directly benefits from GDP growth, good business growth, and reduced bad debt, which is banking.

These are two groups that are both well-priced and attractive, so investors can refer to them," Mr. Phuc advised.

Meanwhile, Mr. Phan Manh Ha, Sales Director of VnDirect, recommends not buying stocks just because of fear of missing out on opportunities, especially with stocks that have increased rapidly in the recent period.

Instead, investors should study the economic context in the next 6 months and be patient with the stocks with good fundamentals that they are holding. If they want to buy now, they can target good stocks that are still in the accumulation zone, with cash flow coming in to buy.

For investors who have made large profits thanks to the recent "local fever", they should take partial profits to regenerate purchasing power during market correction sessions.

According to Mr. Ha, for investors who still have cash at the present time, they should start as a new investment. In particular, investors need to pay attention to determining their risk appetite, thereby determining their trading strategy and tactics.

“Investors need to choose stocks and portfolios that suit their investment taste and risk tolerance. At the same time, they need to focus on the long-term trend of stocks, especially when the market has gone up strongly.

At the same time, it is possible to combine swing trading tactics (short-term trading) to optimize capital costs in small market fluctuations. This tactic involves the proportion of cash and stocks in each session and each period, not holding money to wait for the market to adjust, because it is very difficult to predict small adjustments in a large growth cycle," Mr. Ha advised.

Mr. Nguyen The Minh - Director of Analysis of Individual Clients of Yuanta Vietnam Securities Company - recommends that investors with high proportions should also consider selling and not bottom fishing at this time.

“This is not the time for investors to buy the bottom, because the session on July 29 showed signs of a short-term reversal. Therefore, investors should prioritize selling to reduce the proportion to a balanced level of 40-50% of the portfolio to ensure risk safety. Especially when there is margin (financial leverage), it is necessary to eliminate it so as not to affect the investment,” said Mr. Minh.

According to Mr. Minh, if you want to continue investing, you should choose bank stocks because the valuation of this group is not too risky.

The next group is the food group, this group has recently had a continuous increase although the growth rate is not too hot and the valuation is not high.

Experts from AIS Securities Company believe that short-term investors should still reduce the proportion of stocks in their portfolio, especially in groups that have increased rapidly or have high volatility (banks, securities). Do not rush to buy during technical recovery if any.

Vietcombank Securities Company (VCBS) recommends that investors closely follow market movements and realize profits from stocks that have recorded hot growth recently during recovery sessions during the session.

Along with that, take the opportunity to look for codes that show signs of holding the support zone and wait for disbursement opportunities when VN-Index regains balance.

SHS Securities Company analyzed: The VN-Index had a strong trading session with a record volume of orders. This shows that this is a strong short-term distribution session for many codes, groups of codes after a period of hot growth after being very optimistic and can use leverage at the critical level.

With current developments, the VN30 index may be under pressure to retest the highest price zone of 2021, corresponding to 1,560-1,590 points.

" We recommend that investors carefully evaluate short-term transactions and assess the risks to their current portfolio.

Partial realization of profits for stocks that meet expectations is starting to weaken. For investors, the speculative ratio is still too high, it is necessary to continue risk management, reduce the ratio when the market recovers , "the analysis company said.

At the end of the trading session on July 29, VN-Index decreased by 64.01 points (4.11%), down to 1,493.41 points. On the HoSE floor, there were 314 stocks decreasing, 41 stocks increasing, and 15 stocks remaining unchanged.
On the Hanoi Stock Exchange, the HNX-Index fell 8.43 (3.20%) to 255.36 points. The entire floor had 159 stocks falling, 47 stocks rising, and 33 stocks remaining unchanged.
UpCOM-Index decreased 0.87 points to 106.07 points.

PHAM DUY

Source: https://vtcnews.vn/chung-khoan-roi-tu-do-tu-dinh-lich-su-nen-ban-hay-om-mua-co-phieu-ar956964.html