Vietnam Roars To All-Time Highs (VNM)

From Dana Lyons: After more than a decade, the Vietnamese stock market is back at all-time highs.

One of the unsung market stories of 2017 was the long-term breakout, or near-breakout, action in many emerging markets. This included several of the Asian “Tiger Cubs”, e.g., IndonesiaThailand and The Philippines. One laggard among that group, though, was Vietnam…until now.

It’s not that the Vietnamese market didn’t perform well last year. The benchmark VNI Index was up roughly 50% – about as much as any of the emerging markets that we track. It just had a lot of catching up to do to reach its all-time highs set in 2007. However, the VNI has weathered this latest global equity correction about as well as any market. And as a result, after more than a decade, the index has finally surmounted its all-time highs over the past few days.

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This is obviously a huge milestone for the Vietnamese market. But does it mean the VNI is off to the races? In a Premium Post at The Lyons Share, we’ll discuss our investment strategy around the Vietnamese market and how to access it.

The VanEck Vectors Vietnam ETF (VNM) was unchanged in premarket trading Friday. Year-to-date, VNM has gained 10.40%, versus a -0.35% rise in the benchmark S&P 500 index during the same period.

VNM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #18 of 75 ETFs in the Asia Pacific Equities Ex-China ETFs category.


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Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.

This article is brought to you courtesy of Dana Lyons, JLFMI and My401kPro.