Investors advised to adopt 50:50 ratio for local, overseas investments

BANGKOK, 11 February 2016 (NNT) – An analyst has suggested that investors maintain a balance between domestic and overseas investments this year as stock markets worldwide are still expected to see heavy fluctuations.

Mr Win Udomrachtavanich, Chief Executive Officer of One Asset Management Ltd, projected that volatility will continue to dominate most stock markets around the world in the short term due to the Chinese economic slowdown and declining oil prices. Nonetheless, in the medium and long terms, the global economic recovery and the adoption of quantitative easing measures by the central banks of major economies could help shore up the indices.

He pointed out that the Thai stock market will be influenced by global fluctuations, coupled with the oil price slump and uncertain capital flows. He estimated the Thai stock index this year at the range of 1,200-1,500 points, with the government’s investment stimulus measures serving as the main positive factor.

Mr Win recommended that investors reserve half of their assets for domestic investments, preferably 20 percent for stocks, 20 percent for the real estate investment trust and 10 percent for bonds. The other half should be invested in foreign stocks as a way to diversify the risk.


-- NNT 2016-02-11

FDI down 79% in 2015. Who is stupid enough to invest in Thailand?

Fifty-fifty recommendation the CEO/analyst says. Guess this means the CEO ain't got a clue whether it's best to invest in Thailand or outside Thailand. I expect his recommendation resulted from the average of multiple coin flips, but I expect he refers to his coin flipping method as proprietary analysis.

Wait until Summer 2016 to invest in T-bills. Interest rates will be higher as the government continues to fund off-budget programs in a last hurrah before the constitutional referendum.