The SET index of Thailand equity market reached a 19-year high this week according to an article in The Wall Street Journal.  The Thai bhat also reached its highest level in 5 years. It is interesting that Thailand’s economy is doing so well considering that the country seems to have a shaky political system with …

Continue reading ‘Thailand’s SET Index Reached 19-Year High’ »

When hot money flows into an emerging country it can create spectacular rises in equity markets. However when the flow of hot money reverses course, the inevitable crashes will be terrifying as well. The following chart shows the performance of the Thailand IFC Investable Index from 1988 to 2000: Click to enlarge In the early …

Continue reading ‘Impact of Rapid Reversal of Hot Money Flows from Emerging Countries’ »