Investing in Thailand through political instability

Investing in Thailand through troubles

In this video Caglar Somek, Partner at Caravel Fund International, explains why he feels that Thailand remains an interesting investment opportunity despite recent troubles. He also presents why Thailand should see a positive economic and financial outcome to the recent coup. 

Main reasons of Thailand’s resilience and attractiveness for investments

  • To invest in Thailand (and other possibly unstable countries), investors should factor in a political risk premium.
  • The Coup d’Etat of May 2014  was expected by investors since November 2013 when protests started in Bangkok, so it’s not really a surprise and investors has time to divest if they wanted.
  • Thailand has a long history of military coups over the past 70 years, so local investors are used to it.
  • The Coup actually remove political uncertainties in the 12 to 24 months ahead, with a technocratic government in place focusing on political and economic reforms, which might prove positive for the country in the coming years.
  • Investors are not afraid of their investments in certain companies being seized by the government who would nationalize companies. The local economic tradition and political elite’s usual behavior is not likely to go in that direction.

This interview was conducted by Deirdre Bolton of FOX news in May 2014

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