Winston Sual View on Market and Europe Crisis

European crisis is not likely to be settled anytime soon, the estimation time for  it to settle down is another 1 or 2 years, but since Indonesia is only had a very little impact on the European crisis, we still have the confident that the JCI could still reach 4000 or a bit more by end of year

Financial Sector is the sector that battered the most by the European financial crisis, because funds in Europe have to sell out their shares in emerging market to secure cash, because they are facing a lot of redemption, and they can't afford to fail, because a failure/default may lead to financial rush on banks and other financial institution

But in Indonesia, we had very few impact, or almost none in real sector. We can still see our companies earning are growing, demand are still high, the GDP rate estimation is still 6.4%, a bit correction from the previous estimation of 6.5%. But according to us, a 0.1% difference does not means much, so, all in all, Indonesia still provide a very good place to invest

To prevent default, printing money is one of the few options that US and EU Central Banks had. And printing money means there will me much more liquidity in the market,with excess of liquidity, means they had to pour/invest their money somewhere, and emerging market such as Indonesia is one of the country that provide good Return on Investment

We believe that the 3300 level of JCI is the bottom, because the foreign selling are easing at those level.