December 22, 2006 at 12:48 pm by Tom Lydon
The following occurrence is an example of why emerging markets exchange traded funds (ETFs) need intense monitoring. Thailand’s new government, which gained power only months ago, drove its country’s financial markets into utter chaos by imposing heavy penalties on foreign investors. According to Brett Arends with TheStreet.com, the Bangkok stock exchange fell 15%, after previously falling 20% due to the spread on other emerging markets. This financial disaster caused investors to pull out $699 million from the Thai stock market in a day!
Thailand’s new laws were designed to cool the stock market which will cause a lot of fund managers to pull out and it won’t stop there. Hedge funds will be forced to sell and the effect will trickle down to all emerging markets. It’s not a matter of "if", it’s "when".
Tags: Emerging Markets, Thailand
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December 22nd, 2006 at 2:28 pm
I have enjoyed reading your articles. I am not sure I get all of them on a timely basis, but I hope you will send them promptly. I have put a major of my investments in 12 ETF’s and follow them closely. For now, I only want your service if it is free.