Poon Panichpibool noted the Democratic Party now controls both houses for the first time in six years, a development he said should spur a risk-on approach for investors in Thai stocks as the year gets underway.
The market now expected a smoother recovery for the US economy, with Democrat president-elect Joe Biden facing no major obstacles to his stimulus programme.
Poon also noted investor interest in cryptocurrencies that saw Bitcoin smash through the $40,000 barrier on Friday, after rising more than 32 per cent in the first week of 2021. Investors were piling into crypto seeking higher returns amid the low-interest-rate environment, he explained.
The analyst advised investors to buy, despite high stock prices on the Thai exchange. He forecast Thai shares had room to rise at least 10 per cent this year, adding the Stock Exchange of Thailand (SET) index could reach 1,650 points.
Cyclical and tech stocks were particularly good value, said Poon.
However, investors should keep a close eye on economic recovery and the virus crisis across the world, as well as moves by central banks.
He also advised that a “buy and hold” strategy would not be profitable in 2021 due to price volatility. He suggested that investors instead adapt their portfolios according to changing market conditions.