Tin mới
Where do we park our money? (26/02)
06/08/2010 - 22 Lượt xem
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Stock, property, gold and bank deposits are the four investment channels available to investors. |
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There is huge investment in the stock market - of more than VND400 trillion (US$25 billion) or 40 percent of the country’s gross domestic product. There are now over 300,000 investors in the market. Share prices on Ho Chi Minh City’s stock exchange reached low levels after falling for six straight days, encouraging investors to believe it is time to again start buying stocks. But there is still a fear in the back of people’s minds about more sharp falls because of a liquidity crunch caused by many proposed initial public offerings by companies, huge investments pouring into the property and gold markets, and the central bank’s belt-tightening to curb the surging inflation. The property market became overheated early this year but the relentless march of land prices in large cities like HCMC and Hanoi has shown signs of coming to a halt in recent days thanks to series of strong measures, including tighter monetary policies, and new taxes on property. The US economy’s lurch towards a recession has sent the prices of gold, a safe haven in times of crises, soaring. Despite the interest rate being at a low 3 percent, the US economy has failed to recover; so, the Federal Reserve will surely continue to cut the rate. But low interest rates normally bring with them the risk of inflationary pressure. Keeping money in banks is becoming an attractive option after the central bank tightened monetary policy. The interest rates on deposits have increased sharply, with the one-year rate approaching more than 10 percent at many banks. |
