The Thai stock exchange offers some of the highest so called "yield-gap" stocks -anywhere in the world! Offsetting-correlations are a very desirably portfolio enhancer and risk reducer.
With some of the highest dividend yielding stocks anywhere, at 6-9%, vs. very low interest paid on Thai bank savings accounts (around 0.3%). This means ultra-high quality yield cap. shares can be owned (including to foreingers) to experienced stock pickers here. I believe this "yield-gap" is among the World's largest, anywhere!
Why is this: 1) retail investors have shunned local stocks for some years due to a bearish mkt., and not least because, 2) they indirectly nurture endless "trading galore", among the just very few -way overvalued- big cap stocks, like example DELTA (p/e 131, dividend yield 0.22%). Thereby all but ignoring the impressive/established high dividend "yield horses". A most interesting investor case can be made around these...and I know how to pick them!
Further, and most interestingly, they have just about zero or even negative correlation, to the US bubbly stock mkt. In finance & investment we can prove how offsetting-correlations are a very desirably portfolio enhancer(!) and risk reducers, especially during times of US stock market excesses. All notably on top of 0% Thai inflation and along a strong currency!
Paul A. Renaud. www.thaistocks.com
