Stock market June 16: Should you hold a lot of cash at the current stage?

Vietnamese stock market analysts are advising investors to maintain a cautious approach, suggesting a cash holding of 30-40% in their portfolios. Despite the VN-Index nearing the 1,800-point mark following a recent uptick, experts believe it is not yet the ideal time for significant investment.

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investors should still maintain about 30-40% cash in their portfolio.

Huỳnh Anh Huy, Director of Analysis at Chứng khoán Kafi, noted that optimal opportunities for investment arose one to two weeks prior, during market corrections when many stocks consolidated. For investors who have already deployed 60-70% of their assets, Huy recommends holding back on further immediate deployment. He anticipates short-term fluctuations during the market's technical recovery, emphasizing that maintaining a cash reserve allows for opportunistic purchases of fundamentally sound companies at attractive valuations.

This strategy, however, is primarily suited for value investors who focus on fundamental analysis. These investors aim to increase their stock holdings during price dips. Conversely, momentum investors, who track price trends and trading volumes, might find the current market conditions more favorable for deployment due to positive cash flow and price momentum.

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The market's increase like the June 15 session is not yet the ideal time for strong disbursement.

Analysts from Chứng khoán Rồng Việt (VDSC) suggest that while the market shows potential for a recovery rally, a clear signal would be the VN-Index surpassing 1,810 points with improved cash flow. They advise investors to remain vigilant, avoid chasing rapid early-session gains, and review their portfolios. Chứng khoán BIDV (BSC) acknowledges solid market support but sees no clear reversal signals, urging caution. Chứng khoán Tiên Phong (TPS) observed improved liquidity on June 15, indicating returning demand after a period of caution and reinforcing market balance at current levels.

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Maintaining a certain percentage of cash will give investors more opportunities to increase their holdings of shares in companies with good fundamentals at more attractive valuations.