Main factor: Weakening USD
During that time, because of weakening USD, funds being flowing to other market instead of US. And, Emerging Market - especially Asia - being the top spot for foreign funds to invest in. Malaysia, by that time didn't left out from the opportunity, and changing the lifestyle of many Malaysians (from ordinary person to Stock Traders).
This time around, many economists predict that USD will weaken because of the massive budget deficit recorded, high unemployment rate and weak economy's figures. What's the big deal?
Do remember that US funds reaches as high as 50% of world's share market. See it now?
For sure, US funds will flow from US to Emerging Markets (to get out from holding US currency).
Then, which asset classes they may went in? Fixed Income or Equity? It is very much depends on the risk appetite of investors. But, from the current scenario (June09), investors are most likely to move out from being conservative to aggressive mode. For that reason, Emerging Asia is the region where investors could not afford to miss out. More capitalised market like China, Hong Kong, and Singapore will most likely to benefit from these in-flow of funds.
Which sector/type of companies being recommended by you???