We will start turn fairly defensive – when China wants to slow, US still lagger, Euro in trouble and Asean is slowing

All data fairly point to a definite slow quarter of 2011.  Indeed, before new data arises, since debt crisis are persist and we do believe commodities and REITs will do well.  Beside of local election, we do not see any reason that the market can be moving towards 1700 at forward PE of overall market at 15 times.  Where regional and internationally are at 10-12 times.

For the main street, things not looking good.  Even if US fix their debt issue, it is true, a huge spending cut will definitely slow down already hit situation.  Last 2 years, China is leading us out but China now also battling QE1 and 2 effects of huge inflation.  A definite slow down is required and hence we do not see any positive news of a major boost again to the market.

For the enxt 2nd half, if no election is announced, local front will trade between 1450 – 1600 as downward flat is expected.

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