Chuck Butler from the Daily Pfennig has been high on the Thai baht lately. As the chart shows, the baht has been strong against the dollar for a few months.
Thailand has some economic positives going for it right now plus most of the region's other currencies have been strong against the dollar.
This might be a catalyst for Thai equities to do well. A strong currency and healthy economy, generally speaking, are stock market positives.
This may all be true but Thailand does not really participate in any global big picture themes. Thailand is not China, does not have oil for sale or export a lot of copper. These themes can be a safety net for the risk taken by investing in an emerging market.
Thailand might do very well but there is more of an aspect of flying solo with this one.
3 comments:
i think thailand sells timber and some other agricultural raw materials to china. Marc faber at one time commented that thailand could benefit from selling to china and it wasn't manufactured goods. unfotunately I cannot find the exact reference.
poor writing on my part. the market does not perceive Thailand to be resourece rich or a part of thee commodities boom.
Timber may be correct but I'm not sure.
I remember '97 when the Thai currency tore through Asia like a Baht out of hell. Your graph reminded me of that.
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