Should I return to the stock market now?

Analysts say the stock market is no longer cheap but is still attractive for long-term and regular investment.

In 2022, I joined the stock market with a capital of 165 million VND withdrawn from savings. During the market downturn, I didn't know how to react, so at one point I lost nearly 70%. After that, I didn't care so I deleted the trading app.

So far, I see that the market seems to be recovering well, the account is only negative 30%. According to experts, should I re-enter the market now? What else should I pay attention to when re-entering this time?

Thanh Tan

Investors are watching the board at a securities company in District 1 (HCMC), February 2022. Photo: Quynh Tran — Investors are watching the board at a securities company in District 1 (HCMC), February 2022. Photo: *Quynh Tran*

Consultant:

The stock market has been recovering for quite a long time after bottoming out in November last year. Interest rates have cooled down rapidly, monetary easing policies and economic support policies of the Government have attracted a large amount of money to the stock market. Along with that, the market also has high expectations for the recovery of the economy in general and the business activities of listed enterprises in particular.

The above factors make the current general market valuation level not too cheap. However, if approaching with a longer-term investment vision, the stock channel still has many attractive opportunities to invest money.

In this return, you should maintain the habit of investing long-term and regularly. Consider the stock investment channel as a way for you to accumulate assets in the long term by deducting from your monthly personal income to invest in it. This helps you take advantage of opportunities from the strong growth rate of the Vietnamese economy in the long term and also helps you overcome short-term fluctuations in the market. Of course, this also requires you to choose good companies to invest in and hold.

Investing in stocks is a job that requires a lot of knowledge, experience, information and time to be able to invest effectively and bring sustainable profits in the long term. If you cannot meet all the above criteria, find yourself a professional fund management company so that they can do it for you.

Pham Le Duy Nhan
Head of Portfolio Management
Vietcombank Fund Management Company (VCBF)

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