These Are Some Investment Strategies At The 2024 Democracy Party

JCI (Photo: Doc Antara)

JAKARTA - Facing the general election year (election), political and economic uncertainty often raises investor concerns. Bank Commonwealth provides investment strategy recommendations that have the opportunity to provide positive returns to remain safe for the 2024 democratic party.

Bank Commonwealth's Head of Research & Advisory Totally Chandra explained that historically the election had a positive impact on the economy, where elections usually increase liquidity in the financial market and increase economic activity. Stock exchange performance ahead of the election also tends to be positive, particularly six months before the election.

For example, in the 2014 election, the Composite Stock Price Index (JCI) strengthened approximately 15 percent from December 2013 to July 2014, while in the 2019 elections the index rose by around 11 percent from October 2018 to April 2019.

In addition to elections, there are several factors that can affect investment in 2024. Among other things, global economic conditions that are expected to tend to slow down, geopolitical tensions that take place in Europe and the Middle East, as well as the monetary policy direction of various world central banks, especially the Fed, which is expected to start cutting the benchmark interest rate in 2024", explained Julily in his statement, Wednesday, December 20.

To deal with it,ULy explained, a balanced portfolio management strategy between a fixed income class and a stock asset (equity) class with the Dollar Cost Avarging method or gradual accumulation is recommended to deal with volatility and market risk which is estimated to be still high.

She said that the revenue asset class is still expected to provide attractive opportunities in line with the plan to cut the Fed's benchmark interest rate. Bank Indonesia (BI) also has room for a reduction in the benchmark interest rate in 2024 if inflation is controlled and the rupiah exchange rate is stable.

Meanwhile, bonds can be used as an investment diversification option with lower risk, but with a relatively stable yield and still providing attractive returns.

Meanwhile, the stock asset class also has attractive opportunities taking into account the solid macroeconomic fundamental conditions of Indonesia, controlled inflation, and Indonesia's economic growth projection which is above 5 percent for 2024.

Thanksly said economic activity is expected to increase as a result of the election. In addition, based on the valuation of the Price Earning Ratio of the JCI, it is also attractive in the range of 15.4x.

Investors should continue to pay attention to the latest market developments related to the ongoing geopolitical tension, the global economic slowdown that has the potential to trigger a recession, as well as the direction of monetary policy of various central banks, especially the Fed. In addition, investors should also adjust to the risk profile and the purpose and term of investment to optimize the portfolio.," said Julily.