The ongoing ''Shutdown Bangkok, Restart Thailand'' protests and seemingly never ending series of political crises in Thailand may have emerging market investors in the iShares MSCI Thailand Index Fund (THD), the Thai Fund Inc (TTF), the Thai Capital Fund (TF) or the (soon to be launched) DMS Thailand Select 33 Index Fund feeling on edge. But having just been to Bangkok where I observed some of the protests, I think the impact of this latest Thai political crisis compared with previous ones is being blown out of proportion by Western media as the real political test for Thailand has yet to come while the country itself faces the same root problem increasingly faced by all democracies (including our own).
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Note: All photos in this article were taken by myself on Tuesday, February 25, 2014.
What is the Cause of Thailand's Latest
Three weeks ago, during the weekend of the botched parliamentary elections in Thailand, a coup did not seem at all imminent, despite the killing of a protest leader at a polling station the week before or the "Laksi gunfight" on the eve of the election. Over
Social unrest is exploding across many parts of the world. In the past week alone we have witnessed scenes of violence erupt in several emerging market countries in different parts of the world. While the unfolding events are important to monitor closely from a geopolitical and humanitarian perspective, it is also important to consider the following - at what point might these events start to have an impact on investment markets including stocks (SPY)? For if the financial stability of any of these at-risk countries starts to crumble, the threat of a global financial contagion could soon follow as the fallout effects have the potential to be the catalyst for the next major market crisis. In monitoring the situation, two key market indicators are readily available to keep investors informed as to whether further action is needed.
The risks currently facing the emerging world are high and rising. Many nations