- 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.
For further details see:
THD: Thai Equities Look Attractive, But Minor FX Risk Would Encourage Caution