Imagine across the world beside of Eurozone, America, Asia, Middle-East all corrected by 30-50%. It is reaching 2009 credit crisis low and forming a “W”. I think if all make things right, a recession or technically recession is possible. But i still think is a slow down rather then a recession.
For the local front, KLCI at 1360 now is consider expensive if you compare to HSI and STi where you can find plenty of PEs between 2-5 times companies with good business model.
I continue recommend a buy mildly as long as the company has dividend policy more then 3% then has sound business model.
In Malaysia, we likes Affin Bank, POS, MBSB, AEONCR at the moment. Seriously beaten down but the valuation is cheap and sound business model.