Medium term here refer to 2-5 years, with the SSD, now perhaps is 5 years.
With the QE3 and the EU crisis, I sum up the following :
1. US$ is trending down, with interest rate near zero for the next 3 years
2. too much hot monies, and the hot monies, will flow to the countries with strong growth and currencies
3. inflation will stay high
4. with lower consumption in Europe and US, China economy will slow down, perhaps at 7-8% GDP, still good, not so over heating
In Sg, I see the over-supply of properties if the GDP growth and FT import is slow down.
So, what will be a good choice of asset class for medium term.
1. commodities : gold in particular, but not the base commodities
2. properties
3. bond and equities
I am looking at the asset allocation for medium term at
Property : 50%
Gold : 10%
Equity : 20%
Bond : 20%