Krungthai CIO sees the Thai stock market has passed its lowest point, recommends increasing investment weight, accepting the domestic situation that has improved after the government was formed quickly, increasing investor confidence, the economy is likely to recover from budget disbursements, exports, and tourism entering the high season. The investment expert team of Krungthai Bank (Krungthai Chief Investment Office) revealed the investment perspective for September 2024 that the global stock market has adjusted for the better after the Black Monday event, when the stock market was severely sold off in early August. Looking ahead, they still maintain the same view that the US economy will slow down and move towards a soft landing. The market is likely to be more volatile due to seasonal factors, with September being the month with the most market volatility. In addition, the US presidential election is approaching and there is still uncertainty about who will win this round of elections. This month, the US Federal Reserve (Fed) will begin a cycle of interest rate cuts, which will help to prevent the market from adjusting too sharply. However, even though the stock market has recovered quickly, valuations are quite tight, and seasonal factors may limit the upside. Therefore, investors are advised to wait for the market to adjust and gradually invest. For assets that Krungthai CIO has adjusted the weight of investment attractiveness to be the Thai stock market, because it is believed that the index has passed its lowest point, supported by both domestic and external factors, such as political stability starting to improve, the appointment of the prime minister being quick, making the market confident that the government's economic stimulus policies, such as the digital wallet policy, will continue, while the Thai economy is likely to recover from the acceleration of budget disbursements that have started to improve, exports are recovering sequentially and should return to expansion from the previous year, and tourism is entering the high season, which has a positive effect on private consumption. In terms of monetary policy, it is in a downward cycle, and the Thai stock market also has money from the Vayuphak Fund supporting the market. As for external factors, it is believed that the start of the interest rate cut cycle by the US Federal Reserve or the Fed may prevent the baht from weakening too much, reducing pressure from the currency, and slowing down foreign investors' selling pressure or turning them back to invest in the Thai stock market again. In terms of the price of the Thai stock market, it is not expensive. The performance trend has passed its lowest point and will gradually recover in the future. However, given the potential for increased volatility, investing in mixed funds is an investment strategy that Krungthai CIO sees as appropriate for the situation. Source: Thai News Agency