DJI at 16,838, is now sitting pretty within my perceived comfort range that is conducive to Asian markets. This comfort is enhanced from its emergence from a cleansing not amounting to a correction, that I think is more significant than its limited extent would suggest because it took place against a background that showed signs of increasing pessimism perpetuating from a diverse range of issues - economic, geopolitical and health. Reinforcing the positives are indications that interest rates will remained subdued or depressed for longer than recently envisaged or speculated. There are also signs that CN may be emerging from under the shade. After struggling for the last few years to disentangle from the negative after effects of its significant but unappreciated contributions towards mitigating the Lehman Bros crisis, CN may be close to being ready for the more tangible and visible phase of its massive urbanization program. Also, the other side of this urbanization coin is, i think, that it will be used to restructure CN export dependent economy to a more domestic dependent one. The potential are salivating. Hopefully India under Modi will finally show more definitive signs that it is starting to stand up to become an economic power commensurate with the heft its geographical and population sizes. Most Asian markets are still lagging far behind the US and even European markets, caused in part by western funds over enthusiasm or misplaced hopes for positive outcomes from the unusually cheap money policies and thereby underweighting Asia. Yet despite all the efforts of Super Mario, Europe has not been able to reclaim its spot under the sun but instead has created another drag for itself in the form of Ukraine. I therefore continue to being bullish on Asian equities, seeing it out performing all others over the next year and am looking forward to my investment in an Asian Growth unit trust to gain 40% in that time.
Posted on: Tue, 19 Aug 2014 00:54:20 +0000
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