Weare approaching the year end and there is little to detract from the positive outlook for local markets. Low inflation, good growth dynamics and expected Ringgit strength favours a balanced portfolio with a healthy allocation to small caps.
- Recent local underperformance due to Ringgit weakness on back ofDollar strength.
- Dollar higher on better data and geopolitics.
- US yields moving down on concern over Fed caution.
- Higher inflation, cautious Fed and policy uncertainty to hit theDollar.
- Ringgit gains on strong domestic dynamics to benefit both bonds and equities
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