While some observers may believe Thailand is still rife with political volatility, especially after the military took control in May, Thailand’s economy and incomes have historically expanded faster and remained more stable under the three times the military led government, compared to the nine civilian ones. [Thailand Stocks, ETF Flourish Under Military Rule]
Still, there are reasons to be cautious with THD. In Thailand, one moment of calm can rapidly give way to political volatility. Additionally, Thai stocks are pricy relative to the MSCI Emerging Markets Index. The SET trades at 13.5 times forward earnings compared to 10.8 times on the MSCI Emerging Markets Index.
As is the case in the Philippines, lower oil prices are expected to help Thailand, which also imports the bulk of its energy consumption. Standard Chartered Bank is bold enough to predict low oil prices will help Thailand achieve 6% GDP growth this year, well above the estimate of 4% held by most analysts.
iShares MSCI Thailand Capped ETF