Our theory is simple. If FED is daring enough to end QE3 means they have data on hand that at least 6 to 12 months should have a stable outlook. We should see a stronger USD and potential another round of BNM interest rate increase of 25 basis points.
China is desperate to maintain its grow rate at 7 to 8%. U.S. Is in stable growth environment. Japan and Europe are in loosening stage. ASEAN still in growing mode. We found sentiment is bias to benefit equities markets.
We continue our cautious optimistic approach. However we will increase equities reinvestment percentage by 10% point of our total portfolio. Holding percentage remained across portfolio.