SG Economy: (The Edge) Bank of Singapore chief economist do not forsee a Recession even if Europe wilts. Add that Asian mkts decline in equities are probably in the process of shooting on the downside, and volatility is set to remain high in the near term. Add that a default by Greece is Given, but the greater concern is how this would affect the other EU economies and banks with huge loans to Greece. Note however that economies in Asia are in much better shape now vs 2008-9.
House advocate investors be conservative at this pt of time, and say that the yr end or early next yr may be a better time to start putting money to work. For now, Bank of Singapore has a negative rating on equities, citing risks of earnings downgrades and outflow of funds. Within its stock picks in Asia are China Mobile, Energy Development Corp and Bangkok Dusit.
On currencies, advocate reducing exposure on USD and keep weighting on emerging mkts, like the Brazialian Peso, Indonesian Rupiah and SGD. In commodities still like gold and silver, and expect Oil to trade between US$75-85 in the near term.
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