once the tide rolls out and the foreign speculation ends, it will be interesting......

Avoid the Thai Market: There Are Better Opportunities Elsewhere

http://seekingalpha.com/article/42224

once the tide rolls out and the foreign speculation ends, it will be interesting......

Avoid the Thai Market: There Are Better Opportunities Elsewhere

http://seekingalpha.com/article/42224

Thank you for bringing this article to our attention.

Dr. von Pfeil's recommendation is good news to the Thai government whose current baht measures are meant to encourage Thais to invest abroad or pay dollar accounts quicker in countering against the inflow of foreign dollars invested in the Thai stocks (so far net inward fund of Baht 130 billion baht) which has caused the baht too strong and damages to Thai export industry. If his recommendation is taken by most foreign investors, then the Thai government's problem on too strong the baht would be solved.

The current baht strength has been due mainly to hot money coming into the Thai weak stock market for capital gain. Their flow of bringing dollar to Thailand's stock exchange has helped them so far of also earning extra exchange gain. For 2006, the exchange gain amounted to 12% and 2007 7% todate. Since the government's current measures have been viewed by most locals and foreigners as not that effective, hence the market still remains buoyant since the announcement of the measures.

Does one think the foreign investors would leave Thailand alone and go somewhere else as recommended by Dr. von Pfeil? Somehow, I do not think they would forego the current opportunity of having two sure gains: capital gains and exchange gains. Those foreign investors would love to see the baht strength being pushed down to 30 baht. The opportunity is too rare for them to let go.

Well, the Thai government may not agree with his reasonings, especially on the growth being built up of inventory, but sure love his recommendation of avoiding Thailand market.

I'm not suggesting he is wrong, but I'd like to hear where else he suggests to invest in SE/East Asia at present. Many of the borses have the same problem as Thailand.