Contents
Asset allocation recommendations . 3
Overweight cyclical markets, underweight defensives 3
Upgrading Korea and Taiwan 3
The Investment Wheel 5
Increase equity and equity-linked issuance 6
Dollar weakness: good news for Asia 6
Early signs of improving liquidity 8
Cyclically adjusted P/Es 9
CoE peaks, equities bottom 11
Outlook for volatility 12
Investment implications 13
Country section14
China 14
Korea 16
Taiwan 18
India 20
Hong Kong 22
Singapore 24
Malaysia 26
Thailand 28
Indonesia 30
Appendices 32
1. Country asset allocation model 32
2. Asian key macroeconomic forecasts 37