Rising Asset Prices .. a worry!

ASSET price inflation will most likely become a key problem for Asian and Emerging economies buoyed by capital infusions from developed. And money pouring into developing countries could raise concerns about their currency policies, particularly those that are pegged to the US dollar. The challenge is whether there is adequate capital absorption. The lack of depth of capital markets must mean that such capital flow will find itself in equity or real estate. As such the success probability of recent Singapore's action to contain real estate prices remain hopeful at best.