Skip to main content

Emerging Markets Headed Higher

An examination of most emerging markets showed that many are bottoming out and are forming strong consolidation levels to rally from. Many have been oversold over the subprime mess. Even the clouds are clearing for US markets, and that should be a green light for a next upwave for most markets.


China has finally had a meaningful correction and uptrend for the longer term is still intact. Good base building has been happening over the past week, which was why I promoted the China dolls again. On any indicators, China markets have been way oversold. Even though higher rates, inflationary pressure and lending restrictions have restrained players, but buying has been building up. Brazil is the next market showing very bullish signs as well, followed by Korea.

The more battered Taiwan may rebound but its still showing some mid term weakness. Malaysia and Singapore would fall into this category, there will be some upside but inherent strength would be lacking as foreign funds are finding better markets for true exposure.


While among the bigger markets, HK is still getting plenty of attention and would be the best long market for the next 3 months at least.

Comments

sopskysalat said…
Dali,

US sky seems clearer with numerous measures being introduced lately. Paulson's grand plan of freezing the reset rates, yesterday's concerted efforts by many central bankers and the liquidity injection by sovereign funds into banks.

What could go wrong in your opinion to stop the recovery in the market? China inflationary problem seem very tacky as the people are finding hard to afford a living.

Cheap money has flushed the market and driving up almost everything, everywhere.

Please correct my view. Thanks

Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.


My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.


I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.


My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.


Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:






























p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far



http://malaysiafinance.blogspot.my/2016/12/bank-negara-may-have-switched-on-bull.html


I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…