Wealth Adviser Newsletter 02.09.22

Investing in Vietnam

This week Wealth Adviser brought you a country review, with Dien Vu, portfolio manager of the GBP1.7 billion LSE listed investment trust Vietnam Enterprise Investments Limited outlining the investment case for Vietnam.
The country’s Vietnam Index (VNI) was one of the world’s best performing indices last year, increasing 39.0 per cent, almost identical to corporate earnings growth. However, Vu writes that with the VNI flat in Q1 2022, it then fell over 20 per cent by the start of June amidst global and domestic volatility. This was despite corporate earnings growth averaging 27.1 per cent in Q1 2022 and its expected expansion of over 20 per cent for the year.
Vu writes that for investors with a long-term horizon, macro and microeconomic growth outlooks remain strong and suggests the country’s stock market presents compelling investment possibilities.
Something closer to home comes from Charles White-Thomson, CEO at Saxo Markets who reflects on his thinking a year ago in this week’s In My Opinion. White-Thomson writes: "My note reviewed classical conditioning within the financial markets and whether Pavlov’s dog theory is at work amongst investors. This coincided with an article by Charles Randell, the FCA chair, who called for greater powers against risky crypto ventures and the role of influencers including Kim Kardashian."
White-Thomson writes: "Successful investing is not just about managing your actual capital or money, you also need to protect and cherish your mental capital or emotions. In my experience both are equally important to a successful outcome or put another way – low confidence makes investing much more difficult. It is not necessarily a bad thing to be one of Pavlov’s dogs, the key is to recognise it within yourself, and by doing this you can compensate and offset. Challenge and balance are the key. The message is not to be always wary of the bellringers, as in many cases they offer sound advice, it is more to know which bell ringer influences you. This takes some careful thought."
Beverly Chandler, managing editor, ETF Express
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