Xmas gift from FED and finally Yellen did the right thing raised rate 0.25%. Perhaps the only thing she should not do is again giving more hikes message in 2017 when she may doing it after 6 to 12 months or not doing it at all.
Crude is likely to be traded above USD 60 in 2017. With our budget planned at USD 45 per barrel. Above USD 60 will provide a strong support for both national and oil Economy. We are continuous positive in 2017.
The Trump effect goes on and set many records in US Equities market. Even before he is going to deliver result. A stronger US market will definitely drag up the whole world economy. In this scenario, a recovery China also will lift up even more Economy.
The world Debt issues may skipped this round and heading for another new cycle. We will see a gradual recovery in all aspects coming years. Yes still before a next Debt issues crash waiting. But definitely not this round. We will adjusting our strategy real soon bias to aggressive.
We will continue buy into the market with our top picks. We will utilize a buy on weakness strategy. As we advocate a world recovery before the next crash due to debt. We believe it can be years after this recovery. The recovery will be mild and by stages. Thus no rush to buy heavily but gradually when weakness prevail. Asset oriented, Green, Food, Tech and agricultural remained our top picked of all industries. Whereas special pick on MBSB, CIMB and EIG remained main focus.
Unemployment down 0.3% to 4.6%. If US and China both largest Economy of the world into recovery. Isn’t it a good fuel for world recovery? A greater chance for 2017 to be a better year than 2016.
As market continue weaken due to RM weakness. We bargain hunted some Amfirst and MBSB. Affin reported continuous stable profit. We continue our buy call with a target min above RM 3.00