Gold is a strategic asset, add money waiting for disbursement opportunities

AFA Capital recommends increasing liquid assets such as cash, bank deposits and defensive assets such as gold and gold rings to cope with a year forecast to be full of volatility for global financial markets.

Investment Channel 2025: Gold is a strategic asset, add money waiting for disbursement opportunities

AFA Capital recommends increasing liquid assets such as cash, bank deposits and defensive assets such as gold and gold rings to cope with a year forecast to be full of volatility for global financial markets.

The 2024 US election results saw a "Red Sweep" wave when the Republican Party won completely with the re-election of President Donald Trump and the majority in the Senate and House of Representatives.

In the face of this "red wave", 2025 is predicted to be a volatile year for the global financial market. According to AFA Capital's investment strategy report, interest rates are expected to continue to increase in the early stages of 2025. Therefore, this organization recommends increasing cash and bank deposits in the investment portfolio. This not only brings income, but also helps create disbursement opportunities when more attractive investments appear.

Regarding defensive assets such as gold, gold rings, etc., Mr. Nguyen Minh Tuan, CEO of AFA Capital, assessed that gold will still be a strategic asset in 2025. According to experts from AFA Capital, the demand for gold in the international market is expected to remain stable in the coming time, especially thanks to central banks increasing gold reserves to restructure assets. Meanwhile, geopolitical conflicts and instability have not had significant new developments. President Trump's interventions have not provided clear information, causing the world economy to face many uncertainties in 2025.

Regarding US public debt, expectations for a Trump 2.0 term indicate that the possibility of increased budget deficits will continue to push up US public debt. Historically, these two indicators often go hand in hand, so an increase in US public debt may again positively support gold prices.

Mr. Tuan has a positive assessment of gold, especially in the context of the world economy facing many unpredictable fluctuations and investors need to find a safe haven from instability. For domestic gold, the USD/VND exchange rate is forecast to continue to increase in the first half of 2025, also creating pressure on gold prices. However, a notable point about gold supply and demand has been that the price gap between SJC gold bars and world gold has decreased sharply. The sharp decrease in the above gap makes it easier to control supply, although buying SJC gold still faces many difficulties.

Asset class outlook.

Unlike the two channels of liquid assets and gold, AFA Capital evaluates and recommends reducing corporate bonds and bond fund certificates. The reason is that the performance of this asset group is no longer attractive compared to bank deposits, especially in the context of a large amount of bonds maturing in 2025, especially in the real estate sector.

For growth assets, Mr. Tuan suggested increasing the proportion of stock fund certificates and listed stocks. However, the stock market is expected to experience strong fluctuations in both directions due to great uncertainty.

Sharing the same view, at the Workshop, Mr. Nguyen Duy Anh, Head of VCBF Investment Portfolio Management, also pointed out a signal that investors have recently been interested in related to the trend of 10-year US government bond yields. Long-term bond yields often decrease during the period when the US Federal Reserve (Fed) cuts its operating interest rates. Since the Fed started cutting interest rates in September 2024, yields have been relatively unusual while remaining high. A similar thing happened in 1989, also making investors fear the possibility of a crisis and skeptical about the Fed's ability to continue lowering interest rates.

Mr. Nguyen Duy Anh, Head of VCBF Investment Portfolio Management.

According to Mr. Duy Anh, since the beginning of the year, both the world and Vietnam stock markets have been reflecting concerns. However, statistics in the transaction history also show that every year or so, the VN-Index has a period of decrease of more than 20% with an average decrease time of about 5 months. Actual fluctuations still occur frequently. However, the profits lost due to worries about market corrections are larger than the actual amount of money lost when corrections occur. Therefore, according to Mr. Duy Anh, "trading" by buying and selling stocks many times is still not as good as holding stocks for a long time.

According to a representative from AFA Capital, there is always opportunity in danger. Many opportunities can be found from internal factors of the economy such as production, promoting infrastructure construction and increasing research and investment in the technology sector.

Source: https://baodautu.vn/kenh-dau-tu-2025-vang-la-tai-san-chien-luoc-them-tien-cho-co-hoi-giai-ngan-d240283.html