They may be right after recent strong run up.  I think they are shorting the currencies or covering their shorts.

The origin of emerging markets currencies weaknesses were due to most central banks following US strategy to devalue their currencies. Besides, US interest rate rise a mere of less than 50 basis points sparked strongest dollar rally which is unreasonable.  Oil prices dropped also cause huge Ringgit drop in past 2 months.

Emerging markets currencies may have a correction at anytime soon. But there is no justification dollar can stay strong at low rates as of now.  Besides, in mid to long term.  The assets of emerging markets are no way to justify a continuous low currency until have a crash in economy.

If Greece is not possible to fail even it suppose to bankrupt.   Emerging markets especially Asean has more foots than dollar.  Goldman is a licensed speculator.

This implied RM 1.84 is a good support and privatisation potential remained.  If oil continue to stay below USD 80 per barrel.  We think AA will got big potential to retest RM 3.00.

Household debt continue on the rise. This gives less chance for central bank to relax further.  In this subdue retail sentiment in Malaysia.  Any new measures to cool credits increase will slow retail further.  A vital step buy will hit retail harder.

Government will spend further to boost infrastructure to contribute GDP in a bigger picture.

We will further reduce debt ratio this year.  With our investment strategy focused into three areas below:

1. Asset and dividend oriented growth to large cap companies.

2. Climate change related companies

3. Agriculture and foods related companies

Before the next reason for another correction. Both the beaten currencies and equities markets in emerging markets will recover further. 

From oil to gold, emerging markets to Dow Jones or Hang Seng Index.  The whole markets becomes a volatile casino.  However, this created a huge opportunity if you just follow a simple discipline of buy low sell high. 

We have disposed all Aeon-CE warrant on its morning spike.

We believe if there is a qualification of emerging market. Asean is always our favourite given our understand of the markets.  We like Malaysia, Thailand, Indonesia, Vietnam and Philippines.

RM will continuous trading higher towards fair value of RM 3.80 vs 1 USD in our view.  If devaluation is not an option by Bank Negara.  We expect RM will further strengthen towards RM 3.50 vs 1 USD.

We expect the market will move higher after rates lowered by a few central banks.  Low cost funds prevail and continue to support a higher market. 

Fed tone lowered drastically compare to 3 months ago FED and lots of analyst forecasting several interest rate hike in 2016.  A month ago more than 70% analysts forecasted oil will tank to USD 15 per barrel.  If you listen to all these analysts. You are not going to make money from the market.

When this is a growing phenomena. Energy company will tend to do better. Environment friendly or green company will improve result across time.  Our strategy will be the same with green companies as one of our focus.