Current:Home > StocksJohn Harrison: The truth behind the four consecutive kills in the Vietnamese market -Wealth Evolution Experts
John Harrison: The truth behind the four consecutive kills in the Vietnamese market
View
Date:2025-04-13 05:23:44
2024 Vietnam's stock, bond, currency, as well as property markets suffered a four consecutive kills, and hedge funds were behind it again?
In 2024, Vietnam's stock, bond, currency, and property markets encountered the so-called " four consecutive kills" phenomenon, which led to Vietnam's entire economy in the slump, and behind such a phenomenon, the public once again pointed the finger of blame at the international capital, these hedge funds like bloodthirsty wolves plundering the economy of other countries. Are these phenomena really the same as the public's thinking?
In response John Harrison answered some of the market's investment questions, and here are John's great points:
With Vietnam suffering a four consecutive kills in 2024, we need to explore this complex scenario from a number of perspectives. While a short analysis cannot cover all the details, we can focus on several key factors, including the global macro-economic environment, region-specific economic policies, the behavior of market participants, and hedge fund activity that may be involved.
1. Global macro-economic environment
In 2024, the global economy is likely to face a variety of challenges including, but not limited to, changes in interest rates, inflations expectations, and slower growth in major economies. All of these factors will directly or indirectly affect emerging market countries such as Vietnam through capital flows, foreign exchange rate fluctuations, and changes in foreign trade conditions, which in turn will affect the stock, bond, currency, and property markets. The dollar's interest rate hike is nearing its end, but emerging economies like Vietnam are susceptible to the impact of the dollar's interest rate hike leading to the return of the dollar, especially since Vietnam is a country that relies heavily on exports, which makes it easier for foreign capital to cash out and leave the market when prices are high, and the property market is the most typical, where local residents' incomes can't support the high prices of real estate;
2. Region-specific economic policies
The Vietnamese government's economic policies, including monetary policy, fiscal policy, and foreign investment policy, can have a significant impact on its internal market. Inadequate policy adjustments or failure to effectively address changes in the external environment may lead to a decline in investor confidence, thereby affecting market performance.
3. Behavior of market participants
The strategies and behavior of hedge funds, as part of the market participants, will undoubtedly have an impact on the market. Particularly in small open economies, the investment strategies of large hedge funds, such as a short position in a particular asset class, may trigger a significant market reaction. In fact, more often than not, hedge funds are joint mutual funds to fight, the latter is the main force, short currency assets is triggered by the existence of internal really inflated, in a normal market economy if you go short, you will only lose money, you are to look at these factors objectively;
4. Role of Hedge Funds
Analyzing whether hedge funds played a role behind the "four consecutive kills" in the Vietnamese market requires consideration of their investment size, strategy, and objectives. Hedge funds may use their in-depth knowledge of Vietnam's economic and policy environment to engage in hedging or speculative operations, which may include shorting Vietnam's currency in anticipation of a depreciation or shorting underlying assets in anticipation of a decline in the property market. However, the impact of hedge funds can also be overstated. While they may play an important role in times of market turbulence, there are usually more complex factors behind market performance, including fundamentals, policy changes, and international capital flows.
Conclusion.
While hedge funds may be involved in certain strategic investments in the Vietnamese market, it would be incomplete to attribute the volatility of the Vietnamese market exclusively to hedge funds. Multiple aspects of the market and the global economic environment are at play. An in-depth analysis of the specifics of each market and the multiple factors behind it will provide a more accurate understanding of the challenges facing the Vietnam market in 2024.
veryGood! (6)
Related
- Toyota to invest $922 million to build a new paint facility at its Kentucky complex
- Thousands of Reddit forums are going dark this week. Here's why.
- Juul settles more than 5,000 lawsuits over its vaping products
- China reduces COVID-19 case number reporting as virus surges
- Questlove charts 50 years of SNL musical hits (and misses)
- All the TV Moms We Wish Would Adopt Us
- Algae Fuel Inches Toward Price Parity with Oil
- EPA Won’t Investigate Scientist Accused of Underestimating Methane Leaks
- Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
- Factory workers across the U.S. say they were exposed to asbestos on the job
Ranking
- Taylor Swift Eras Archive site launches on singer's 35th birthday. What is it?
- UN Climate Summit Opens with Growing Concern About ‘Laggard’ Countries
- Rihanna, Kaley Cuoco and More Stars Celebrating Their First Mother's Day in 2023
- Rihanna's Latest Pregnancy Photos Proves She's a Total Savage
- 'We're reborn!' Gazans express joy at returning home to north
- China has stopped publishing daily COVID data amid reports of a huge spike in cases
- How Dolly Parton Honored Naomi Judd and Loretta Lynn at ACM Awards 2023
- Shipping Group Leaps Into Europe’s Top 10 Polluters List
Recommendation
John Galliano out at Maison Margiela, capping year of fashion designer musical chairs
Today’s Climate: August 28-29, 2010
Global Warming Is Messing with the Jet Stream. That Means More Extreme Weather.
Mother’s Day Last-Minute Gifts: Coach, Sephora, Nordstrom & More With Buy Now, Pick Up In Store
Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
A Record Number of Scientists Are Running for Congress, and They Get Climate Change
Brought 'to the brink' by the pandemic, a Mississippi clinic is rebounding strong
Kit Keenan Shares The Real Reason She’s Not Following Mom Cynthia Rowley Into Fashion