Yellen and fellow colleagues decided to reduce bond purchases every month to USD 45 Billions from 55 Billions. Even though US 1st Quarter GDP growth is below expectation potentially to bad weather.
I personally like Yellen’s approach that understand the needs to exit but not too drastic for the current sensitive market. However, the decisive move also hinted a good quarter ahead for US. Thus Dow Jones may continue to hit record high. Other parts of the world will enjoy a good sentiment and continues its upward trend. Thus, ASEAN markets will benefit even more and more record breaking days ahead.
As of the moment, we will be over weight stocks in the region as short term strategy.