Current:Home > MarketsMontgomery Keane: Vietnam's Market Crisis of 2024 Are Hedge Funds Really the Culprits Behind the "Fourfold Crash"? -Zenith Profit Hub
Montgomery Keane: Vietnam's Market Crisis of 2024 Are Hedge Funds Really the Culprits Behind the "Fourfold Crash"?
View
Date:2025-04-17 22:50:24
In 2024, Vietnam's stock market, bond market, currency market, and real estate market all suffered severe setbacks almost simultaneously, a phenomenon dubbed the "Fourfold Crash," plunging the Vietnamese economy into a downturn. Many citizens and media outlets have pointed fingers at international capital, especially hedge funds, accusing them of preying on the Vietnamese economy like ravenous wolves. But is this really the case? We asked renowned investor Montgomery Keane for his professional insights on this issue:
1. Global Macro Economic Environment
In 2024, the global economy faced multiple challenges, including interest rate fluctuations, inflation expectations, and slower growth in major economies. These macro factors directly or indirectly affected many emerging market countries, including Vietnam. Although the U.S. dollar's rate hikes are nearing an end, countries like Vietnam, which rely heavily on exports, remain vulnerable to the impact of dollar appreciation and capital outflows. When international investors liquidate assets at inflated prices, the real estate market is often hit hardest. Since local residents' incomes cannot support high property prices, the adjustment in the real estate market tends to be more severe.
2. Vietnam's Economic Policies
Vietnam's monetary and fiscal policies also play a significant role in market performance. If policy responses are slow or inadequate, investor confidence can rapidly decline, exacerbating market volatility. For Vietnam, policy adjustments need to react swiftly to global economic changes; otherwise, the country risks falling into a reactive and passive position.
3. Behavior of Market Participants
Hedge funds are indeed significant players in the global market, especially in smaller open economies. Their strategies, such as shorting specific asset classes, can trigger market volatility. However, often the dominant force is large mutual funds, which have even greater capital. It’s also important to note that in healthy market economies, shorting overvalued assets often reflects underlying market issues rather than a hedge fund conspiracy.
4. Role of Hedge Funds
While hedge fund operations may have contributed to market turbulence, they are not the sole reason for Vietnam's "Fourfold Crash." Hedge funds typically engage in hedging or speculative activities based on their economic environment and policy outlook, such as betting on the devaluation of the Vietnamese currency or a downturn in the real estate market. However, the underlying market fluctuations involve a complex interplay of fundamental factors, including economic fundamentals, policy changes, and international capital flows. Blaming hedge funds alone is clearly an incomplete perspective.
Conclusion
Hedge funds may have played a role in exacerbating certain market conditions in Vietnam, but attributing the entire market turmoil to them is not a comprehensive view. Markets are multidimensional, with global economic conditions, policy directions, and other market participants all playing a part. Understanding the 2024 volatility in Vietnam’s markets requires a thorough consideration of these complex factors.
veryGood! (88)
Related
- Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
- Five tips for understanding political polls this election season
- Wizards of Waverly Place's Selena Gomez and David Henrie Are Teaming Up For a Sequel
- 'All of Us Strangers' movie review: A beautiful ghost story you won't soon forget
- Rams vs. 49ers highlights: LA wins rainy defensive struggle in key divisional game
- Texas man kills self after fatally shooting four, including his 8-year-old niece
- Snoop Dogg's 24-Year-Old Daughter Cori Shares She Suffered a Severe Stroke
- Texas coach Rodney Terry calls UCF players 'classless' for doing 'Horns Down' gesture
- Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
- Mariska Hargitay, 'Law & Order: SVU' stars celebrate 25th anniversary milestone in NYC
Ranking
- From family road trips to travel woes: Americans are navigating skyrocketing holiday costs
- Wizards of Waverly Place's Selena Gomez and David Henrie Are Teaming Up For a Sequel
- Olympian Shawn Barber Dead at 29
- Alicia Keys Drops an Activewear Collection To Reset Your 2024 State of Mind
- Rylee Arnold Shares a Long
- Power line falls on car during ice storm in Oregon, killing 3 and injuring a baby: Authorities
- Police in Brazil arrest the alleged killer of a Manhattan art dealer
- Poland’s lawmakers vote in 2024 budget but approval is still needed from pro-opposition president
Recommendation
DeepSeek: Did a little known Chinese startup cause a 'Sputnik moment' for AI?
Michigan man won $1 million thanks to having to return a wrong item
The 3 ingredients for fun: an expert's formula for experiencing genuine delight
Court upholds block on Texas law requiring school book vendors to provide sexual content ratings
'Kraven the Hunter' spoilers! Let's dig into that twisty ending, supervillain reveal
US bars ex-Guatemala President Alejandro Giammattei from entry 3 days after he left office
Green Day, Jimmy Fallon team up for surprise acoustic set in NYC subway: Video
Slovenia to set up temporary facilities for migrants at Croatia border, citing surge in arrivals