One analyst has suggested that Thai Real Estate Investment Trusts (REITs) should be part of a balanced investment portfolio due to continuing stock market fluctuations worldwide.
Win Udomrachtavanich, Chief Executive Officer of One Asset Management Ltd, projected that volatility will continue to dominate most stock markets around the world in the short-term, largely due to the Chinese economic slowdown and declining oil prices.
Nonetheless, in the medium- and long-term the global economic recovery and the adoption of quantitative easing measures by the central banks of major economies could help shore up the indices.
He pointed out that the Thai stock market will be influenced by global fluctuations, coupled with the oil price slump and uncertain capital flows. He estimated the Thai stock Index this year at the range of 1,200-1,500 points, with the government’s investment stimulus measures serving as the main positive factor.
Win recommended that investors reserve half of their assets for domestic investments, preferably 20 percent for stocks, 20 percent for the real estate investment trust and 10 percent for bonds. The other half should be invested in foreign stocks as a way to diversify risks.
