Investors are no longer interested in interest rates
In 2022, the Wall Street has been analyzing and forecasting all inflation-related figures and waiting for each update. But now they are no longer too surprised, or at least as many as they once were.
Mr. Kim Forest - investment director of Bokeh Capital Partners - explained that investors have gradually gotten used to price pressure, every report has confirmed this trend. In December, the consumer price index (CPI) increased by only 6.5%, marking the 6th consecutive month of decline.
The important thing is the market's reaction showing that inflation has peaked. Policy makers will soon complete the roadmap for increasing interest rates.
Meanwhile, the next meeting of the Open Market Committee (FOMC) scheduled for January 31 - February 1 is expected to lower the interest rate increase to 25 basis points. In addition, Fed Chairman Powell's speech at the press conference will also reveal more clearly the level of aggression of the Fed at the present time.
Expectations for a breakthrough with Vietnamese stocks
Sharing the same view, Mr. Nguyen Van Son - Analyst at Phu Hung Securities Company - also said that the Fed's interest rate change may no longer be a concern for the market in 2023. Instead, how long the Fed is expected to anchor interest rates in the upper regions and the consequences of a high-interest-rate environment will determine how the economy will decline is important.
"US inflation is sending a positive signal that the Fed may be on track with its plan and is also in the market's forecast. Whether this development will significantly change Vietnam's current interest rate policy or not, we still have to observe more internal factors in the country," said Mr. Son.
According to him, macroeconomic information has not gotten worse and gradually positive factors will appear, which will be a plus point for the market after the Tet holiday. With the expectation that cash flow will be more vibrant after the holiday, he assessed that the opportunity for the market to surpass the score after Tet is quite large.
Mr. Nguyen Viet Quang - Director of Yuanta Hanoi Business Center 3 - hopes that this will be positive information to help the Vietnamese market create a bottom in the medium and long term.
"With the current market developments, if there are no abnormalities, it is likely that the market will break out of the medium-term discount channel before or after Tet. This will be an opportunity to bring good profits to investors," the expert predicted.
