Low leverage and a disconnect to global troubles.

PaulRen's picture

A great place for investors to be during the continued world turmoil.

As interest now rise, lead by the US, its more important then ever to gear investments in places/areas/companies which have low debt i.e. low leverage. Many companies in Thailand for one lead on this.  Especially select smaller cap choices.  As post the Asian Financial crisis of 1997 -huge amount of permanent deleveraging took place here, yet this is hardly ever reported.  I remain convinced the group of researched stocks I have in my model portfolio along with select choices I like more then others, will combined continue to perform well, of course always with some volatility.  

Late April/May marks the annual dividend payment season and here as well, smaller cap choices of mine will pay around double the SET average in dividend yield.  The Thai economy, after some lag, will rebound this year and hence its a great place to investor hide during the continued world turmoil, which in fact has little to do with Thai fundamentals.  Stay tuned.

This week marks the Thai Annual New Year Celebration and so I wish all members and visitors here, a Happy Thai New Year, if you celebrate this.

Best Regards,

Paul A. Renaud.