Wednesday, December 20, 2006

Thai Capital Controls - Should Lulu Be Concerned?

The NST headlines does not bear good news for his year-end.
The Thai Govt has done a U-turn on the restrictions, but the market is still spooked.
Will their move scare foreign investors out of Thailand and out of Asia, or just out of Thailand, and into Malaysia?

Are we going to go through another '97?
Some think that the signs are there as
1. The past 2 decades was more or less a 10 year cycle. back in '86 and the infamous '97
2. '97 started with a Thai meltdown
if we're truly honest to ourselves, we'd realise that our fundamentals are not that good.
and recently, i-forgot-which minister or bursa guy said that the surge in KLSE was due to foreign investments.

Is it here again?
Is the downturn coming?

Lulu is afterall, just a lulu. Advise her.
What do YOU think is going to happen?

This is the intraday KLCI movement as of this morning. Market looks undecided.

3 comments:

ksq said...

except for a handful who lost a Merc S-class to Bursa yesterday, the biggest negative effect is that the Thai military rule government has lost their credibility. Whether foreign funds will now flow down south is anybody's guess. BNM's Zeti will have to give reassurance to foreign investors.. 'This is not like 1997 OK???'

shag said...

like ksq says, this isn't 1997. Unless you're speculating in currencies & stocks there is nothing to worry about.

Josh said...

Well, the Lulu before is rather optimistic, but I suppose the local market or "gamblesters" are not so bullish. They gamble..err invest based on subjective "sentiments" - so i think its better to keep your cash close and tighten the belt. Love this Lulu.