Tonic for turbulent times | Bangkok Post: business

Two weeks ago, analysts were saying the SET index in the first quarter would ride a downward trend. A few days ago, their analysis changed tack. This recent volatility _ with the index shooting up and down 2-3% of capitalisation in a day _ is unusual.

The turbulence has been evident worldwide since last year, influenced mainly by the sovereign debt crisis in the euro zone, and investors have grown cautious about stock investment. The local bourse has not been spared, even though the Stock Exchange of Thailand has outperformed most others in the region.

Stock investors rely mainly on fundamental analysis of stocks. Those with good margins and intrinsic value are thought to be good investments, and investors like to accumulate such stocks at cheap prices whenever the market is down.