Time for what now? (Asia Stock Index Has Fallen)

A few days ago, on 10 November 2016
Some of the stock price index of countries in Asia also increased as a result of the impact of rising stock price index in the US hose one day after the election of the 45th president. As presented one of the official news website of The New York Times, some countries are China, Hong Kong, Japan and Australia with the development of the share price index respectively, as seen in the image below.

In addition, Indonesia also affected with increasing IDX approximately 0.67% for the first session to the level of 5450.78 (tempo.co, Jakarta). As for the value of the IDR rose slightly to 13,119. But suppose the money market and global stock will still respond to the sentiment continued election of the new president.

Then on 14 November 2016
Asian stock markets were falling, including IDX and impact IDR corrected to near 13,800. This is due to the foreign investors begin to take their money from emerging markets to invest in the US (developed countries), because the opinion that the condition of the US economy will improve under the new president mentioned, it is supported by a plan the Fed raises interest rates, and fiscal policy to increase the US government's budget, in addition to the world's oil supply that has reached the target in October that oil prices fell in November and possibly until the first quarter of 2017.

The aim is fitted, while the US is expansion of lower oil prices. Oil prices fall once again underline that, because the key in energy prices which influence the raw material prices (inflation).
What percentage of foreign equity participation in the Asian stock markets (developing countries), especially the companies ?? if you learn the financial crisis of 2008 should you have to reduce the proportion of their capital investment.

Thus:
Perhaps this is also time for your business expansion, to add value to the company in terms of assets, which would certainly affect stock prices ahead. And I hope the government also opened up opportunities for it.

Thanks.

ASEAN Economic Community (AEC)

Indonesian society and the world is currently experiencing a fairly rapid growth. Developments that are in an era called "postmodern". One evidence of the development of the world community is characterized by economic cooperation and trade between countries. A country's participation in global trade can strengthen relationships, ensure stability, improve living standards and promote economic growth. The state as an entity that has evolved constitutional responsibility to think about the welfare of its people. So is the case of Indonesia, one of the form is to establish cooperation with external parties in the economic, political, social, cultural and defense security.

As one of the countries that are in an ASEAN region, Indonesia pioneered the formation of a community joined together in the region of Southeast Asia called ASEAN Economic Community (AEC). AEC is the ASEAN Socio-Cultural Community Blueprint. AEC is the economic integration of the member countries of ASEAN to create a single market in the ASEAN region. AEC was first coined at the ASEAN Summit in Kuala Lumpur in December 1997 and then continued in the 9th ASEAN Summit in Bali in 2003 which agreed on the establishment of the ASEAN Community is one of the pillars of the AEC. AEC aims to create a single market and production base characterized by free flow of goods, services, investment, skilled labor and capital movement of goods more freely. Priority sectors to be integrated, namely agricultural products, automotive, electronics, fisheries, products derived from rubber, textiles and garments, products derived from wood, air transport, e-ASEAN (ITC), health and tourism.

Facing the era of free markets ASEAN member countries of ASEAN should be prepared with the condition the community and make a number of regulations that facilitate investment, the flow of goods and services, as well as prepare a variety of competitive products or export quality and human resources who can work across ASEAN countries. AEC does not just bring competition and challenges, but also provide a useful opportunity, hopefully Indonesian people can take advantage of this momentum as well as possible.

Thanks.

The Fed, How it should be?

This is a dilemma indeed, when the Fed wants to soon raise interest rates to curb inflation below 2% (approximate), but there is also the opinion that it is not time to do because it will suppress the financing that will reduce consumption, on the other hand it is still in the form forecast data (unrealized), in addition to the argument that the inflation target of 2% is not a realistic target that needs to be easing 2% more.
 
I agree with the last, which is reviewing the inflation target

It is also likely to be the fault of the developing countries and developed countries.

What is it:

1. How much actual interest rate is optimal ? 
2. How much actual inflation rate (the target) is optimal ? 
3. How the actual exchange rate is optimal ?

So in this regard, you can not specify a target inflation as measured by the ability of the country, for example the unemployment rate, the market price of commodities and others. Because we also have to pay attention to stock prices, currency values, and others with fluctuations faster than inflation.

It could be 2% it is already above the optimum level of inflation or otherwise is still far below the optimum point.

Thanks (^_^)