Experts at HonorFX assess the potential of today's leading investment channels | Finance | Finance

The financial market has recently been experiencing strong fluctuations due to the influence of many factors such as the Russia-Ukraine war, high inflation, and tight monetary policies of central banks...

This makes investors confused and worried about choosing the right investment channel. Understanding that psychology, we conducted a short interview with a representative of HonorFX - a financial unit operating in Vietnam - to bring readers detailed comments on the potential of the leading investment channels today.

When we asked about how the economic and political context in recent years has affected global finance, the HonorFX representative said that the Fed's continuous interest rate hikes in the 2022-2023 period and geopolitical instability in regions, the hottest of which are Russia - Ukraine and the Middle East, have shaken the world financial market strongly.

According to statistics, from March 2022 to June 2023, the US Federal Reserve (Fed) has raised interest rates 11 times to curb inflation. Due to higher borrowing costs, investors tend to sell off stocks to reduce risks, leading to increased selling pressure and causing global stock prices to fall. In 2022, the S&P 500 recorded a decrease of up to 19%.

Fed to continue raising interest rates in 2022 - 2023

During the same period, the Russia-Ukraine war that broke out in February 2022 continued to significantly disrupt the global financial market. Stock markets fell sharply due to concerns about the negative impact of the war. In particular, European stocks were the most heavily affected due to their close economic ties with Russia and Ukraine.

With such instability, gold was sought as a safe haven at that time. Gold prices fluctuated strongly during the Russia-Ukraine war. Safe haven demand and inflation pushed gold prices up, but high US bond yields and a strong USD caused gold prices to fall afterwards.

However, at the beginning of this year, the world gold market created a boost when it continuously broke the peak. The report of the World Gold Council showed that the gold market recorded a bright first quarter of 2024 with global demand increasing by 3%, reaching 1,238 tons, the highest level in the first quarter since 2016.

The main driver was strong investment demand, particularly in Asia, especially China, where concerns about a weakening currency and underperforming domestic equity markets prompted investors to seek safe havens such as gold. Demand for gold jewelry also remained steady despite record high prices.

Therefore, when we asked more about the potential of investment channels, HonorFX representative commented that gold is still an investment channel worth considering.

Gold has always been the safest investment product amid economic and political instability. The Russia-Ukraine war is still complicated and may escalate, the Middle East war has not ended yet, and in addition, the instability in the Red Sea may cause gold to continue to increase in the remaining months of 2024, but the increase will be slower than at the beginning of the year.

People line up to buy gold at banks

Along with gold, stocks are still a potential market from now until the end of the year. The S&P 500 has recorded a recovery in 2023 with a full-year increase of 24% thanks to the economy avoiding a recession that seemed certain to happen and inflation falling to the level that allows the Fed to pause interest rate hikes.

This is a good sign! Based on data from the beginning of the year until now, the technology sector in general and AI in particular are predicted to be the focus of growth. For example, Nvidia recently "overtook" Microsoft in market capitalization to become the most valuable public company. Nvidia's stock has increased by more than 170% since the beginning of the year and is still going up as the demand for AI shows no signs of cooling down. Therefore, technology company stocks will be a potential choice.

HonorFX representative shared that real estate is also a channel worth paying attention to when it has recovered this year. In the first quarter, the housing segment recorded a total supply of 20,541 products, including 4,300 completely new products and 16,241 products in inventory from previous quarters.

At the same time, residential real estate continues to be "bustling" with many information about customers looking to buy. The recovery process of the real estate market will develop in a more positive direction in the future.

Although the market is still volatile, it also brings many potential investment opportunities. Investors need to be alert and make smart choices to optimize profits and limit risks. Hopefully, the information shared by HonorFX experts about the potential of today's leading investment channels will help you have more basis to make investment decisions that are suitable for you.

Source: https://diaoc.nld.com.vn/chuyen-gia-tai-honorfx-nhan-dinh-tiem-nang-cua-cac-kenh-dau-tu-hang-dau-hien-nay-19624062020160847.htm