Coming to Thailand

[deejah]

seems to me

there inst much that is going to keep the dollar afloat

as it is just paper being printed

and after knowing thailand for a few years

the baht seems to hold its purchasing power pretty well

5 or 10 baht can by a decent snack and 30-40 a meal

also thailand probably has more of an economic future than USA

one disadvantage is not having as many dollars to play the market should i want to

not really interested in opening a thai market account, yet anyways

curious on some experienced investors opinions

i can not help but think in a year or so, when and if the dollar tanks, it will feel like a good move

and well if the dollar rebounds, can always convert more later

there are more advantages and disadvantages but i will spare you for now

about investing

doing nothing is usually not the best idea

[a99az]

Gold and silver.

[SantiSuk]

I agree with you about looking to bring money onshore Thailand (or any other country with an apparently strong economic future). The previously perceived wisdom on this website that you leave everything behind in your 'home' country is now an extremely dubious strategy. The risk that Asian economies implode or hyper-inflate plus the risks of having your money expropriated by the government must surely be lower than the risks of watching your money decline in baht purchasing power as it sits in an old economy savings vehicle.

A mixed strategy is usually recommended for uncertain situations and mixing the location of your money - some back 'home' and some here - is probably sensible. Using foreign banks based in Thailand (HSBC etc) might be worthwhile if you worry about the negligible expropriation risk.

Another risk to consider though is default risk - the risk that your savings disappear because your bank has gone bust. In most Western economies savings in institutions are protected up to certain limits by either the Government or some industry mutual insurance scheme (eg 100,000 euros in Europe; FED protection in US). As we saw in the banking crisis, the collapse of banks is not the 'won't ever happen' event some of us might have thought. I do not yet have a handle on whether there is any level of protection in Thailand - either local banks or international banks based here. Anyone? In any event spread your money around into enough parcels that the loss of one would not be an armageddon event for you.

If you are married to a Thai in Thailand, only you can evaluate the risks of whether you will divorce and whether that makes your money more likely to be accessible to your partner if it has been brought into Thailand. Most of the commentary I see on here - and the fleeting oral explanation I got from my Bangkok lawyer (prenuptial) suggests that Thai wives can seek only relatively modest (in Western terms) maintenance from Thai assets (if they restrict their trawl to Thai law). I think I shall be seeking further legal advice before I bring substantial sums over for investment. I don't intend to divorce and hope it never happens but who can tell what the future holds. The financial adviser to my old firm used to say that the worst investment decision you can make is to plan on the basis that a marriage is till death us do part.

Edited to add: you can possibly hedge your currency weakness against the baht without bringing money onshore Thailand. In the UK I invest in a Thai-specific mutual fund which does well when the Thai SET is strong or when Thai currency appreciates. It's a natural hedge but not a perfect one. Trouble is that there are very few fund managers offering a Thai-specific asset class but there is a wider choice if you go for SE Asia (probably a good idea anyway) or Asia-Pac ex japan. This kind of investing is probably limited to those with assets over $500k although there is no reason in principle why an enthusiast with less money and a bit of common sense about checking things out and spreading money around should not partake.

Edited May 4, 2011 by SantiSuk

[canopus1969]

My HSBC Thai Fund is doing very well thank you :jap: