InnovestX charts strategic course for investors in 2024 amid global uncertainty

InnovestX is a subsidiary of the SCBX group providing investment services.

This suggestion takes into account global economic recovery driven by easing inflation and central banks, particularly the US Federal Reserve, considering policy rate reductions.

However, geopolitical tensions and upcoming elections in several countries, including the United States and India, are leading InnovestX experts to warn that economic volatility and setbacks are possible in the coming year.

While acknowledging the potential for more profits from stocks compared to the previous year, investors are urged to remain cautious.
Sukit Udomsirikul, InnovestX's chief research officer, told a recent media briefing that despite the appeal of the stock market as interest rates stabilise, uncontrollable factors could reverse the positive global economic outlook.

Sukit noted that Asian stock markets remain attractive over other leading markets like the US and Europe due to sustained high growth rates and China’s gradual recovery.

“With lower inflation rates, more foreign capital is likely to flow into Asian stock markets. This is especially true if the US dollar weakens,” he said.

Sukit also pointed to opportunities in the Thai stock market for long-term investors, as it contains stocks priced significantly lower than their intrinsic values.

Beyond economic and geopolitical uncertainties, investors are advised to consider the impact of climate change and natural disasters on investment sustainability.

Sutthichai Kumworachai, senior analyst of Wealth Research at InnovestX, predicted slow economic growth in 2024, prompting central banks worldwide (excluding Japan) to lower interest rates. 

Hence, he said, investors are recommended to focus on high-quality debt instruments, including government and corporate bonds with Investment Grade ratings, along with Asian stocks, particularly those in Thailand.

Suthichai further advised investors to consider global stock market investments, which are expecting improvement in the second half of 2024, with a focus on value and cyclical stocks.

“Also, diversify into alternative assets like gold and Real Estate Investment Trusts [REITs],” he said, suggesting a portfolio increase of about 5% under the current scenario.

Sitthichai Duangrattanachaya, senior global equity strategist at InnovestX, urged investors to consider sustainable and ESG (environmental, social, and governance) stocks, as they will become important and attract more investment.

“For foreign stocks, we recommend investing in companies related to technology themes that benefit from AI and are suitable for long-term investment. Semiconductor manufacturers are poised for an upward cycle in the first half of 2024. Furthermore, investment in stocks that have experienced significant price drops should be prioritised,” he said.

Pichai Lertsupongkit, InnovestX's chief commercial officer, said tax policies affecting international market investments raise concerns.

However, he said, the company believes in the importance and appeal of investing in foreign markets thanks to the diverse range of alternative assets and increased investment opportunities.

Meanwhile, Piyasak Manasorn, InnovestX's senior economist, pointed out the ongoing interest in the Thai stock market, citing factors such as the gradual disbursement of budget allocations and government stimulus measures.

“As for the Thai economy in 2024, we believe the government’s digital wallet scheme will play a key role in driving economic growth. If the digital wallet is implemented, then the Thai economy stands to grow by 4.1%, otherwise, we can expect a more modest 3.2% expansion,” Piyasak said.

“We don’t expect the Bank of Thailand to lower interest rates in 2024 due to two key factors – continued inflation contraction and implementation of the digital wallet scheme,” he said.

Established in 1995, InnovestX positions itself as ASEAN’s trusted leader in investments and digital assets, offering a wide range of investment services, including Thai and foreign stocks, funds, bonds and digital assets through its investment advisors and the “InnovestX Super App”.