Tuesday, September 2, 2008

Dr. Marc Faber on investing in Thailand

Marc Faber, Mark Mobius On Thailand

Posted Tuesday, September 2nd, 2008 at 10:17 am

Earlier today, legendary investors Marc Faber and Mark Mobius talked about Thailand as the Southeast Asian country wrestles with political instability. Thailand’s SET Index dropped to a 19-month low Tuesday after Prime Minister Samak Sundaravej declared a state of emergency following clashes between pro and anti-government demonstrators.

Marc Faber, the famous Swiss-born investor who resides in Thailand, appeared on Bloomberg Television this morning from Bangkok and talked about the political crisis, the economy, and the investment outlook for Thailand. The editor of The Gloom Boom & Doom Report said:

Thailand is essentially a political mess. The economy is not very dynamic, and it will continue to kind of move ahead slowly…

But at the same time, these people look for a strong stock market. I think that will be misplaced. At the same time, Thai shares are inexpensive. You can buy lots of Thai companies at a dividend yield of between 5 and 8 percent. So, that will give some support to the market.

Templeton Asset Management’s Mark Mobius also addressed the Thailand situation when he appeared on CNBC this morning. The emerging markets veteran said:

We are bullish on Thailand long-term. And we have been for quite some time because we think that these political disturbances sort of refresh the political climate and pushes for reform. So, we think after this is over, things will be good…

Based on our experience, from many, many years in Thailand, things will get better. There’s no question about that. You may have to wait for a while. But the interesting thing about the market is it hasn’t come down very much in the face of these demonstrations. So, I would like to see some further correction in the market before going back in.

(CNBC: How much of a correction?)

20, 30 percent like that.

Bloomberg Video and Interview

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