Monday, July 13, 2009

Investing in a post-Bhumibol Thailand

Bloomberg recently ran a lengthy and insightful article on Thailand and concerns of societal unrest in the event of long-reigning monarch King Bhumibol's death (Hat tip: Controlled Greed).

Of course, man on the scene & investor Marc Faber (a regular Bloomberg TV guest) is quoted in this article and offers his take on Thailand's share market and the opportunities present for long-term investors. Here's an excerpt from that piece:

"Amid the chaos, some investors see opportunity in Southeast Asia’s second-largest economy behind Indonesia. As of July 7, Thailand’s stock index had surged 30 percent this year compared with a 0.8 decline in the Standard & Poor’s 500 Index. During the same period, overseas investors increased their shareholdings by a net $621.4 million after being net sellers of $4.8 billion in stocks last year.

Publicly traded companies in Thailand are trading at just 11 times estimated 2009 earnings, making them the second- cheapest in Asia after Pakistan. They currently offer a dividend yield that averages 4.7 percent compared with 3 percent for U.S. stocks and as little as 1 percent for Chinese equities, according to data compiled by Bloomberg. That makes Thailand a buy, says Marc Faber, who manages $300 million in Asian shares at Hong Kong-based Marc Faber Ltd."

If you're interested in the history of Thailand, or would just like to read about global investing opportunities, have a look at the full piece above.

Related articles and posts:

1. Marc Faber on US, emerging markets - Bloomberg/Finance Trends.

2. Fiat money and hot money flows in Thailand - Financial Sense.

3. Marc Faber on Thailand, markets - Finance Trends.

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