If you got in with the Germany ETF, EWG, when I talked about it last Tue, congratulations! As I predicted, the Eurozone leaders finally woke up and agreed upon to come up with a huge bailout plan (of course I did not get insider information from Sarkozy & Merkel in advance). While it is nothing more than printing money and won't end well in the long run, the short-sighted investors exhaled a deep relief sigh by pushing up the stocks prodigiously. An 8% jump for the stock market fund like EWG within 2 days is certainly not shabby. I think there is more to come with EWG.
You may want to keep Thailand on your radar screen now. It is the second largest economy in Southeast Asia. Thailand is a manufacturing hub for international companies in the car and electronics sectors. However, you must know that right now it is facing unprecedented flooding affecting the whole country. Its worst flooding in half a century has closed seven huge industrial estates this month, disrupting international supply chains. Thailand's central bank slashed its 2011 economic growth forecast to 2.6 percent from 4.1 percent on Friday because of flooding and said it was ready to call a special meeting on interest rates, raising speculation about a rate cut. Thailand stock market has declined over 20% from its top in Aug and has since come back quite a bit. But there is a chance that ongoing flooding may add further downward pressure on its stocks. If so, I'd think it is a good opportunity to put some money in the Thailand stocks. After all, it is a temporary setback and it will come back strongly. The ETF funds for Thailand are TTF or THD.
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