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kaufman

Thai based expat investors: what percentage of your portfolios are invested in the SET?

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Greetings All

 

I am currently UK based and contemplating retiring to LOS in 12 years’ time .

 

I currently have the following investment portfolio (tracker funds for equity) that is fairly UK centric:

 

30% in UK FTSE All Share, 30% Developed World (excluding UK) and 10% Emerging markets. Plus a couple of strategic bond funds.

 

Planning ahead, whilst I understand that the Thai stock market makes up a fraction of the world market. I also understand the need for expats to manage exchange rate risk by having significant equity holdings in the Thai stock market.

 

Andrew Hallam’s ETF based model portfolio for a Thai expat had the following geographical breakdown.

 

Thailand Equities: 32.5%

Global Equities: 32.5%

Asian Government Bonds: 35%

 

I am interested to know what geographical allocations the Thai based expat investors on this forum have and how they compare with the model portfolio above?

 

Any input welcomed.

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Right now , I have zero in Thai equities or bonds (having had fairly significant positions in years past). I don’t find stocks I want to own in Thailand anymore. For me the local markets ( stocks and bonds) are not attractive and the currency is probably overvalued. 

I agree that it makes sense to broadly match your investments with your future spending needs and many people have been caught out in recent years because they did not/could not do this. However you do not need to limit your investing to the Baht in order to achieve a reasonable level of future protection.

What about other currencies or markets that have a degree of correlation with the Thai Baht? eg the Sing Dollar. A more attractive currency with a significantly better range of (quality) investment opportunities, at least that’s my opinion. Also, as an offshore investor , no dividend taxation and no Capital Gains taxation in Singapore. ( no inheritance taxation either)

Edited by wordchild
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I don’t believe in rigid currency/asset splits. I am driven more by where I can find good investment opportunities. This sometimes (hopefully often!) takes me in a different direction from the herd. eg Having had fairly small positions in Sterling and the U.K. stock market in recent years, in recent months I have added significantly to positions in that market. Some very cheap stocks there, and also a cheap currency, just my opinion, obviously.

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15 hours ago, kaufman said:

 

I am currently UK based and contemplating retiring to LOS in 12 years’ time .

You're planning now for 12 years in the future?

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If you are thinking of that then you should get familiar with currency trends. The thai baht has been extremely strong for some time and surely has to reverse sometime.

You may want to keep a higher proportion outside depending if it stays high.

Do your homework on the thai market first before assessing allocation and consider risks.

Bigcharts.com includes the SET and a lot of thai stocks.

Be aware of the risk that the thai market tends to get hammered when there are global corrections. It can fall much more than bigger markets.

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A good tip: stay away from the SET!

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15 hours ago, ChouDoufu said:

thai stock market is incredibly small, few companies and small volumes, accounting standards are meh, and corruption is ingrained.

 

a few whales can control stock movements, with no relation at all to underlying fundamentals or economic conditions.

 

i put a small amount (retirement extension funds) in for a short time....only because it was difficult to move it out and back without a work permit.

 

only real advantage is thailand does not tax capital gains (yeah, i wonder who wrote that law?), and dividends are taxed at 10% (while interest on regular savings for little people is taxed at 15%).  of course, if you're american, uncle sam will still extor, i mean tax you on worldwide income.

Thai stock market is one of the biggest in Asia.So,You never trade here,but like to make stupid comments .I have now about 7 % of my portfolio in Thai stocks.As a PR ,I do not need to pay taxes on capital gains and that is an huge advantage.It is not easy to trade profitable now and long positions are pretty dangerous now,so I trade as a swing trader and sometime daily with tight trailing S/L and other IALGO  trading tools.

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In 12 years time, Thailand will be a completely different place politically, economically and socially.

And with any luck I shall not be here, I'll be in heaven, or hell.   LOL

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Surely the SET is gambling. In order to invest doesn't the owner of the business get the money from the "investor"?

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16 hours ago, kaufman said:

I also understand the need for expats to manage exchange rate risk by having significant equity holdings in the Thai stock market.

I don't know, but is there any connection between Thai equities and currency exchange? A strong currency might be company specific with some doing well and others poorly due to currency strength/weakness... 

 

I think for an individual investor, the sole idea is to maximize your profits... there is always a chance the baht will begin to depreciate against Western countries as well... 

 

good luck to us all... que sera sera..

 

 

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I don’t own any stocks but instead I have tied the majority of my savings in physical gold. That way I can easily increase my holdings or sell on a moments notice and never worry what the value or the economy in Thailand or America my home country is doing.

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