RHBRI: Market Outlook & Strategy 2H2012
In our view, the equity market will likely be stuck in a range-bound trading pattern for now, but will likely trend up as global economic uncertainties clear out towards the later part of the year. Investors’ key worries include : worsening of the euro-debt crisis that remains unresolved fears of China’s and India’s economies crashing down into a hard landing ; and the risk of US falling off the “ fiscal cliff ”. External Volatility And Impending Election 2 Key Headwinds On the home front, the major event to watch out for is the impending general election that could also create volatility to the local bourse given the uncertain election outcome. Nevertheless, we believe the market will eventually trend higher towards end-2012, premised on: the ECB making a more decisive move to mutualise the debts of Eurozone governments; China policymakers ease policies substantially and its economic growth re-accelerates; US Congressional leaders co...