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Signs indicating the rise of stock market
One of the hardest points for investors with evaluating the stock market is where the stock market is going up. If it can be assessed accurately Investments have the potential to generate good returns. Therefore, investors are trying to factor in when to start an uptrend. By definition commonly used in the stock market is rising, stock indexes have risen from their bottoms past 20%. There are also five preliminary signs that the market is in an uptrend:
The first sign of major economic indices has risen.
When the economy starts to recover, you will notice that the major economic indexes have started to improve, such as GDP, inflation, interest rates, consumer confidence index, business confidence index, private investment index. , industrial production, etc., if the index improves Assess that the economy is recovering which during this period will start to see more investors come to invest in the stock market Observed from the increase in trading volume per day.
2nd sign is the devaluation of the asset in the money market.
during the economic downturn Investors are cautious with their investments by reducing their investment in high-risk assets (e.g. stocks or derivatives) and adding weight to low-risk assets (e.g. deposits, bonds). Bond prices rose on the contrary, if there are signs that the economy will recover Investors will begin to reduce their investment in low-risk assets. and move to invest in high-risk assets Stocks were among the first assets to gain popularity. It can be seen from the stock index and the price tends to continue rising.
3rd sign is foreign investment.
Foreign investment (Fund Flow) plays a significant role in the Thai stock market. If you notice that investments start to flow back This reflects that the stock market has begun to give attractive returns because investors will look for stocks that offer high returns. There are also other reasons such as government policies starting to open to investors again. Or a country's stock is seen as a safe investment asset, for example. Therefore, foreign investments affect the rise or fall of the stock market.
4th is Performance of a Listed Company
It is a factor that directly affects the direction of the stock market. If during any period the earnings of listed companies are still good or analysts estimate that there is a trend to continue to grow The stock market has a chance to go up. because the performance affects the share price Return on Assets rate of return on equity, rate of return, dividend yield, or real stock value, etc.
And the 5th is the stock market index is stable.
It is a signal that is often used to judge market conditions. In order for the stock market to rise in the long term, there must be a clear trend, for example, the trading volume tends to increase continuously. Volatility must be at a level that investors can control. or the rate of return is consistent, etc.
When the stock market is rising Investors may view it as a time to invest in any stock with high returns, and the news is all positive because the market is optimistic. But the fact that during the market is increasing. Investors need to be more careful with their investments. Follow the news closely Because if the market drops sharply, the strategy can be adjusted to keep up with the situation and reduce potential losses.