With new year at its bay, it time to understand that whether it is going to be a good year for trading or not! It is best to understand the economic outlook of 2020 to decide that which assets will eb best for trading this year. Along with this for trading it is also important that what does the home front is saying about it. Both Finance Ministry and Bank of Thailand are quite optimistic about economic growth momentum. They expect that it is rise to 3% from the projected 2.8% in 2019. Thus, there are chances that trading will also prosper this year. Let’s have a look at different options available.
Many people are expecting recession in 2020 but although the economic background is murky, recession does not seem nearby. Baes on the situation at USA and China it is found that unemployment predictor are quite low and recession is also coming to normal. Thus, it seems that they are going to have their impact on Thailand’s economy.
The effect of growth in advanced economies countries will have impact in Thailand economy too. It is expected that there will be investment in portfolio investment as offshore funds will be flowing into the market. Even there are chances of ramping up of public spending in 2020.
Before the US presidential election to be held in November 2020 there are not chances on any permanent trade truce and that is going to affect Thailand economy.
Next year, the Baht is expected to trade in upward slant. This year the local currency is among the best currency is Asia as it has gained about 7% against US dollar.
Now comes general trading in Thailand. Its true that the economy has slow growth and it is same with the profit too, but Thai shares will trade quite good. Compared top other assets that can be trade, most hope is on the Thai shares.
According to the earning per share (EPS), as per the brokerage houses, there is growth forecast of about 5% in 2020. Even there is expectations that the SET index will reach 1735 points during the present year. Experts says that although there are not much upside gains expected on the Thai stocks but even there is limited downside risk on the stocks. They even suggest that the Thai shares will provide quite some returns this year that may range up to 7 to 8%. Investors can enter the trading market now as the SET index is somewhere around 1600 points that is quote an appropriate level.
Trading in gold is quite common, and it has been found that amid uncertainty gold have risen in 2019. However, according to experts, Gold is going to lose its shine in 2020. As there had been sharp rise in 2019, it is expected that there will be lower valuation attractiveness that will result in lowering of gold rates in 2020. Thus, investing in Gold is not a good option this year, according to the experts.