“Long-term the trend is healthy with strong, consistent capital flows. This speaks well of how the business world perceives Thailand as a place to invest money for a future return. There are periodic outflows, such as the more recent ones, however, seen in historical context this is more an exception than a rule,” according to a Seeking Alpha analysis of Thai economics.
A strong currency is part of the allure with Thailand, an important point when considering THD is not a currency hedged ETF, meaning investors should want to see the baht strong against the dollar.
“The Thai baht is Goldman’s favorite emerging Asia currency because of its strong current account position. Goldman estimates that Thailand can run a current account surplus to the tune of 8.8% of GDP this year,” reports Shuli Ren for Barron’s.
For more information on the Thai markets, visit our Thailand category.