At the time of writing this article, Dow Jones Index have once again surpassed 18,000 points since hitting the low last February (Refer Chart 1). If you follow the market closely, you should know that this rebound is attributed to the policy changes of US interest rate hike, which caused the weakening of the US dollar. On the same note, gold and oil spot prices were also back to its previous levels of US$1200 and US$40.
Chart 1: DJIA 1 Year Chart
Therefore, we can conclude that the market rebound was NOT due to any fundamental change in corporate earnings or improvement in the global economy. On contrary, the International Monetary Fund has reduced the ......