Exploring the investment strategy for August 2020, where investors need to consider several key factors. Companies will begin reporting their Q2 earnings, and the ongoing COVID-19 pandemic situation must be closely monitored, along with the progress of the COVID-19 vaccine.

Hello investors, it's great to meet again to discuss the investment strategy for August. It's important for you to prepare your strategy for this month. The SET Index is expected to fluctuate sideways to sideways up within the range of 1,300-1,350 points. Investors should pay attention to the daily number of COVID-19 infections to see if there are any new highs.

Another aspect to watch is whether the FED will introduce any new measures to stimulate the economy, following the severe impact of the COVID-19 pandemic on the U.S. economy, which saw a historic GDP contraction of 32.9% in Q2. However, this was better than analysts had predicted, who expected a 35% contraction.

On the domestic front, keep an eye on Q2 earnings from the Real Sector to see which stocks outperform expectations. This is worth monitoring, but if any stocks report worse-than-expected earnings, it's best to steer clear of those. Overall, in the short term, focus on stocks expected to report strong earnings, such as those in the food and beverage, housing, and power generation sectors. If the stock index experiences a downturn, it may present an opportunity to gradually accumulate shares.

In the first two weeks of August, Real Sector earnings will be released gradually. If they come in worse than expected, the stock market may see a short-term correction. Therefore, if investors are looking to speculate on stocks during this period, they should focus on those anticipated to report strong Q2 earnings.

However, I would like to caution investors to be wary of 'Sell On Fact' for stocks that report earnings in line with expectations.

If the stocks we speculate on report better-than-expected earnings, those stocks can be held onto, as there is a chance analysts will upgrade their target prices.

Another factor to closely monitor is positive news regarding Phase 3 vaccine trials. If a vaccine is released, investors will need to shift their focus from domestic plays to global plays immediately.

Looking back at July, the Thai stock index opened the month at 1,345.86 points, peaked at 1,391.77 points, hit a low of 1,303.25 points, and closed at 1,328.53 points. This shows that the index dropped 17 points from the start of the month, but from the lowest point of 1,303.25, it fell 42 points, indicating a bearish market in July.

In my discussions with various investors, I've been asked what the current investment strategy is. I told them that trading is the most suitable approach right now. When the stock index drops to 1,300 points, it's a good time to buy, and when it rises above 1,350 points, gradually sell off. In the short term, focus on investing in sectors like food and beverage, housing, and power generation.

As for timing purchases, choosing days when the stock market is down is advisable, but remember not to rush into buying stocks unless there is good news about the vaccine.

Regarding trading by investor type in July 2020 (data from July 1-30, 2020), foreign investors sold a net of 11,309.29 million baht, domestic institutions sold a net of 5,365.01 million baht, brokerages bought a net of 1,222.45 million baht, and retail investors bought a net of 15,451.85 million baht.

This month, the stock market has support levels at 1,280 and 1,300 points, with resistance levels at 1,350 and 1,370 points. As always, I must remind you that investing carries risks, and investors should research thoroughly before making any investment decisions. See you next month, goodbye!

SOURCE : www.bangkokbiznews.com