XLF - THD: Thai Equities Look Attractive But Minor FX Risk Would Encourage Caution

January, 09 2021 03:52 PM SPDR Select Sector Fund - Financial

Thai equities are priced at relatively attractive terms.
While Thai equities do not offer exciting momentum stocks, high exposures to Financials and Energy make the THD portfolio a strong contender for an early-cycle bounce.
However, the Thai baht has also appreciated significantly against the U.S. dollar over recent years, and it is currently diverging with long-term yield spreads.
Over the short term, minor FX risk would encourage a 'neutral' view on THD from a U.S. investor perspective.
In the medium to long term, a bounce-back in economic growth and tourism should lend to a strong recovery in Thai equities.

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Company Name:	SPDR Select Sector Fund - Financial
Stock Symbol:	XLF
Market:	NYSE