Here is my basic case why invest in select quality/reputable high dividend yielding non-biggest cap. Thai stocks: Offsetting-correlation. Opposites attract.
One of the attractions of gold is that it often moves opposite to generally perceived "good news". It can be proven in portfolio-theory that investments which do not move in tandem are a great way to reduce investors risks, i.e. volatility. US centric investors may not have fully grasped this -beyond gold. The shortcoming with gold is that it has 0 current yield, so no "invisible-hand" to help holding it up, i.e. no income if/when times turn bad. Emerging mkts. like oversold Thailand have such very, very different companies than the US, while yielding far, far higher current dividends...and at 1/4 or less US p/e ratios. (Average dividend yields on US stock is barely 1.2%). If there was a US set back or a bubble burst there, as there always is in time,...these, as I know them, would hold-up far better I am convinced, as they are soo different and soo far removed -in all ways. Besides not least, for years already so under-owned! Paul A. Renaud. www.thaistocks.com
