Wake up call -in facts and figures.
Expats and others beware: The wake up call continues.
"We have never witnessed the baht appreciate this quickly, or the sharp rise in the stock market like this." Thai BOT governor April 23 2013.
Many expats here and their goof expat advisers (some have been outright crooks) are learning the hard lesson now. First, a rising Baht is not so good for expensive investment/rental properties here, as all foreigners will feel the increase in rental prices due to Baht strength. These will resist. A rising Baht is not good for all the expats which chose to live here, but then never bring their capital over. As so many expat advisers alluded to do for years.
Over the past few years the Baht has increased from 35 to 28.6 Baht, per US$ (or some 20%) and even more so in %, vs. the EU. Even vs. the mighty Swiss Franc, the Baht has risen around 6 over the past year. While many say they do understand this, they just don't get it in fact: the West is sinking more while Asia keeps rising further.
During year 2016, China will become the globe's largest and so most powerful economy. This will be the major wake up call to the developed rest. 12% of the globe's popullation, i.e. the Western population, still think they can globally run & control things, a la "business as usual". I.e. example controlling institutions like the World Bank and the IMF. Watch see and learn how this will change in the not too distant future.
Nothing is more powerful to investment performance here then rising stocks along with a rising currency...and on top, smaller cap's keep outperforming the general SET index! Just as here advocated all along.
In today's biz news its reported that ABB, a huge Swiss industrial/electrical conglomerate company is buying the solar energy firm "Power-One" for 1 Bill US$. This attest the high growth potential they see in emerging markets for green energy. Power-Buy is the world second largest maker of solar inverters that allow solar power to be fed into electrical grids. ABB is paying 57% more then the last market price of Power-Buy shares. ABB said: "Solar is long term the fastest growing renewable generation market in the world now". ABB in fact as in its pocket book, sees huge potential in solar energy demand in emerging markets.
No company in Thailand has done more in Solar and Wind energy combined then DEMCO, a stock I here advocated 450-500% ago. Now on several brokers buy recommended list. After being an obscure smaller cap stock 2-3 years ago nobody wanted to know about, DEMCO almost regularly now trades in the top 10 most active stocks on SET.
Paul A. Renaud.