Overall, it is an underweight. US market is still under correction, and those who follow Market Pulse regular release in US know this status. Indonesia is under-weight as Morgan Stanley downgraded last May 27. Question is, is it a doom for equity universe or just part of it. We do not think it is a doom and apply to all stock universe. We will further share our thoughts. But, meanwhile keep this simple notes nearby.
-Now, Dow Jones has entered into its 5 to 6 weeks in a row of declines, and this never happens since 2004, not even in 2008. Remember, in 2008 DJI lost 7782 points, while since April this year, DJI has just lost 882 points. So, how is that row of weeks in decline more suitably described? A bit exaggeration. -Even so, market has not panicked yet. No confirming sign that market has been in panick mode. We will tell later the week. -Bad economy data? All discounted already? What about pricing in the must-agreed debt ceiling in US next August? Market has yet to price that in. It will do so with market rebound 3rd week of June. So, watch out your group industry pick and make it inline with overall situation. This said, look, with 5 weeks in a row of declines, crude oil not even go lower $90 or even $80. That is another additional sign. '+'
