All the countries are worst compared to the U.S. economy? NO!

During lunch today, my colleague said better change more Ringgit into other currencies first. Ringgit will continue to depreciate. I disagree and repeated, ‘US$ will continue appreciating at least until their direction is clearer or after the rates have risen.’ Ringgit is way too small a currency to defend against all these huge movements. Fortunately, our Bank Negara has proactively managed this. Then, I read this piece of news in NST. This is what IQI Group Holdings Chief Economist /Investment Strategist Shan Saeed said about the ringgit. You can read the full article NST here or all his reasonings below for ringgit and Trumponomics.
Greenback is getting stronger due to ‘Trumponomics.’ “Trumponomics describes the economic policies of Trump. He is an entrepreneur and he knows how to play his cards.
“The US dollar is gaining strength and investors are moving funds into the greenback. It is as simple as ‘ABC’. The yield on the US 10-year Treasury note has jumped from 1.37 per cent to 2.36 per cent in just four-and-a-half months”
“I strongly believe the ringgit will soon stabilise and appreciate to the level of 4.20 to 4.30 (against the US dollar) within this month or January next year. What is more, the benchmark for oil prices has started trading above US$53 per barrel.”
“If you were to look at the chart for Nov, the Indonesian rupiah declined 3.7 per cent, the Philippine peso fell 2.7 per cent, the Singapore dollar is down 2.5 per cent, and the Thai baht lost 1.5 per cent. “Does the currency chart mean that all these governments are bad, or their policies are wrong? The answer is no! “It is because the US dollar is gaining strength and investors are moving funds into the US currency due to Trumponomics.”
At least I am not alone in my personal views about Ringgit and US$. His final parting comments should be the best. I think it is aimed at Malaysians who has forgotten that fundamentals cannot suddenly change in 2 weeks. This is true for all countries and not just Malaysia. By the way, to those who still believe Malaysia is about to go bankrupt, good night and hope after tonight you can say some positive things instead. Cheers.
written on 2 Dec 2016
Next suggested article:   Trump: Very massive recession for the US soon


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