Buy on dips rather than chase rallies, says Credit Suisse

Sakthi Siva of Credit Suisse says with May approaching in a week's time, a key question once again for investors is whether to sell in May. According to her, there appears to be two factors that suggest investors should sell in May.

She says one is that MS Asia Ex-Japan has corrected in five of the last six years in May by an average of 3.5 percent. Two, the current MS Asia Ex-Japan rally of 18.5 percent has already exceeded in magnitude three of the last six rallies.

But if foreign investors give in and commodity prices do bottom out, the rally could run further, she feels.

"Our year-end target for MS Asia Ex-Japan of 550 offering 6 percent potential upside, suggests investors buy dips rather than chase the rallies," Siva says.