EWM - EWM: The Bearish Trend Of Malaysian Stocks Is Likely To Persist

• EWM invests in Malaysian stocks, which have maintained a bearish trend for over a year now.
• From a cyclical standpoint, including EWM's key sector exposures, EWM does not look well positioned.
• Additionally, EWM is possibly still overvalued, based on a fair assessment of the fund's likely underlying cost of equity.
• I think that recent downside in EWM shares is justified, and this follows trailing net negative fund flows over the past year (notwithstanding recent positive inflows most recently).
• I would advise against investing in Malaysian equities, at least until the local credit impulse turns up materially.

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