Economically, the economic pact of ASEAN (Association of South-East Asian Nations) will make a significant impact to the Asian economy as well as help in the world economy. This means that Laos, Cambodia, Vietnam, Myanmar, Thailand, Malaysia, Singapore, Philippines, Brunei and Indonesia will carry on to outperform provided political stability carries on. Equities Market and Property Market of these economies will outperform significantly during this golden era.
Currently the KLCI is at a critical resistance indicated by the YELLOW CIRCLE at the Middle Channel (refer to above chart). As the YELLOW CIRCLE area is not grossly overbought, in the coming few years KLCI potentially has more upside. The upside in Malaysian financial markets will be spectacular and unbelievable.
This may mean ASEAN currencies will be expected to remain in strong uptrend, contrary to popular beliefs. Expect continual strength in Malaysian Ringgit, Thai Baht, Vietnamese Dong, Filipino Peso, Indonesian Rupiah and Singapore Dollar in the coming many years.
If rating agencies really want to downgrade any ASEAN economy to cause maximum damage, they would not be doing in high profile. The more high profile, the more fake it is, meaning they more they want to buy from you. What you see is not what you get, and what you get is not what you see. That is the magic of financial markets.
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