Investors have become increasingly concerned over the asset quality of banks in Europe, particularly Italian banks. Any disappointment could trigger bouts of massive profit-taking.In terms of investment strategy, we believe property funds and real-estate investment trusts will continue to perform well.Global investors have been pouring heaps of money into REITs. The Vanguard REIT ETF, the largest REIT exchange-traded fund in the US market at US$35.6 billion, has risen by more than 16 per cent year-to-date.For the Thai market, we like JASIF (Jasmine Broadband Internet Infrastructure Fund) and CPNRF (CPN Retail Growth Leasehold Property Fund). Market ViewWe enter the season of second-quarter results riding a rally that has seen the Stock Exchange of Thailand eclipse our previous target of 1,460 points and, for the first time since June 2015, close above 1,500.We thus raise our 2016 SET target to 1,490 and set our 2017 target at 1,600.While average volume in July has risen by nearly 10 per cent from June, daily turnover value has been the real story, jumping 25 per cent over last month.Locals remain heavily in the net-sell camp, diverging from foreigners, who have been steadily intensifying their buying since May. The International Monetary Fund cut its global growth forecast last week and warned about increasing uncertainties, particularly in Europe.At around the 1,500 level, we believe the upside of the SET Index is limited from the perspective of fundamentals.Fund inflows could push the market to yet higher levels, but the risk-return ratio seems unfavourable.The key factors to watch out for are Japan's stimulus policy and the European Central Bank's release of 51 banks' stress-test results on July 29.

Source: The Nation Bangkok July 24, 2016 18:56 UTC