Thai Stocks Drop Most in 2 Years on Fund Outflows:

“Overseas investors want to take money out from Thailand’s stocks and other financial assets at any price,” said Kavee Chukitkasem, an investment strategist at Kasikorn Securities Co. in Bangkok. “The money flow has reversed to outbound from inbound earlier this year even as the country’s overall economic and earnings growth remain sound.”

http://www.bloomberg.com/news/2013-06-11/thai-stocks-drop-as-much-as-5-3-on-fund-outflows-bangkok-mover.html

The article refers to PTT and AIS: PTT are almost level with the stock price of a year ago and with a gross yield of 4% will still have seen a better return than deposit in the bank. In the middle of a trading range.

Thai Stocks Drop Most in 2 Years on Fund Outflows:

“Overseas investors want to take money out from Thailand’s stocks and other financial assets at any price,” said Kavee Chukitkasem, an investment strategist at Kasikorn Securities Co. in Bangkok. “The money flow has reversed to outbound from inbound earlier this year even as the country’s overall economic and earnings growth remain sound.”

http://www.bloomberg.com/news/2013-06-11/thai-stocks-drop-as-much-as-5-3-on-fund-outflows-bangkok-mover.html

I'm gobsmacked! Who would have thought this would happen?

What can they do to reverse this trend?

Are the chickens pecking on the hen house door?

It's because of the heat ... the chickens are still ill and cannot lay many eggs because of that heat spell a few weeks ago

Emerging markets are freaking out about the global flight from risk

Emerging market economies are scurrying to shield themselves from a sell-off in global markets. With their currencies weakening against the dollar as money floods into safe havens, their central banks are taking action.

http://finance.yahoo.com/news/emerging-markets-freaking-global-flight-134143870.html

http://www.nationmultimedia.com/opinion/Economic-bubbles-are-back-to-haunt-Thailand-30196914.html

I believe a big reason the Thai economy, and all of SE Asia for that matter, is and has been on fire is because of easy credit.

Thai household debt has been rising 20 to 30% every year for the last few years. In fact the personal debt to GDP is higher now than it was in 1997, as it is in most other Asian countries,

There are property "bubbles" expanding in almost every Asian country. It will only take 1 or 2 of those "bubbles" to burst and the dominoes will start falling, it doesnt have to start in Thailand..

A little clip from the World Bank.

The World Bank sounded a warning on rising debt levels in countries such as Thailand, Malaysia and China.

While

China's general government debt stood at 22.2 percent in 2012, up from

19.6 percent five years ago, non-financial corporate debt has jumped to

126.4 percent of GDP from 113.6 percent in 2007. Household debt equal

29.2 percent of GDP in China, up more than 10 percentage points from

2007, the World Bank added.

"More significant than the growth of

government debt has been the expansion in corporate and household

debt... The sum of general government, non-financial corporate and

household debt now exceeds 150 percent of GDP in Malaysia, Thailand and

China," the World Bank said.

Or, as my wife puts it, "just look what you can do with a credit card. All you need to do is sign a piece of paper and they give you things."