Central Bank Rate Cuts Predicted to Boost Investment Opportunities
Bluebell Securities forecasts strong growth for US and Asian stocks in 2025, driven by anticipated interest rate cuts from major central banks, including the US Federal Reserve and the European Central Bank.
Narisara Chaiwathana, CEO of Bluebell, highlights the Thai bond market as particularly attractive due to expected first-quarter rate cuts by the Bank of Thailand.
This strategy is likely to draw increased foreign investment, as investors may seek long-term bonds to capitalize on high interest rates before they decline.
Bluebell advises investing in three- to five-year bonds to secure returns as rates decrease, leading to potential capital gains.
Additionally, the firm recommends US and Asian equity funds, predicting robust returns based on supportive macroeconomic trends.
US corporate profits are expected to grow, aided by artificial intelligence advancements, despite a slight economic slowdown.
Asian markets, particularly India, South Korea, and Vietnam, appear promising due to strong economic fundamentals.
China might rebound with monetary and fiscal stimulus offsetting US tariff pressures.
Overall, Bluebell projects growth, targeting 15 billion baht in bond sales in 2025, and aims to maintain its top-five ranking in bond distribution.
Bluebell's assets under administration reached 7 billion baht in 2024, with expectations to grow to 15 billion baht by the end of 2025.
The firm's income target is 250 million baht, a 95.5% increase from 2023, through the sale of bonds and financial products.