still a bargain, double! 😀

Global markets
US equites continued rally, propelled by tech stocks on Christmas Eve. Nasdaq +0.9%, S&P +1.1%, Nasdaq +1.4%. Investors continued to buy US equities for the seventh straight week, across the board, from ETF to single stock. Inflow reached USD 10 billion.
Interestingly, US equities advanced while US Treasury 10-y yield climbed higher to 4.59%, short distance from YTD high of 4.73% in April.
Malaysia markets
Local Macro
As we last chat, there ...

1. Current market analysis (Morgan Stanley's perspective):
• Market breadth narrowing:
After entering October, the market breadth index rapidly declined.
The company's unemployment rate data and CPI index exceeded expectations, further dampening market optimism.
Investors are beginning to flock to higher quality stocks, which typically have solid performance (high-quality indicators).
The importance placed on high-quality stocks:
Morgan Stanley recommends investors to continue selecting stocks with stable growth and quality indicators, and to avoid individual stocks with strong speculation or high volatility.
2. Market Phenomena and Risks:
Institutions' herding effect:
More and more institutions tend to consistently increase their holdings in well-performing stocks, while swiftly selling off poorly performing stocks.
The herding effect may cause the phenomenon of local stock price fluctuations, but once the market reverses, the risk will be very high.
Market liquidity crisis:
The depletion of the Federal Reserve's reverse repurchase tool (RRP) and insufficient liquidity pose a threat to the stock market.
The reverse repurchase tool has helped alleviate market liquidity pressures, but as the tool shrinks, overall market liquidity may further deteriorate.
3. Historical Comparison:
• Current Market vs. Internet Bubble in 2000:
• From 1995 to 1999, the Federal Reserve maintained loose monetary policy, leading to a frenzy in capital for Technology stocks.
After 2000, the policy tightened, the bubble burst, and the technology stocks' valuation plummeted significantly.
Morgan Stanley...