We think these three emerging market countries Malaysia, Philippines and Thailand offer better opportunity at this time than the emerging markets index, or the popularized BRIC countries Brazil, Russia, India and China. Lets see why.
Once plagued by a 1997 financial meltdown that required bailouts from the International Monetary Fund, the smaller economies of the Far East have come roaring back. Stock markets in Thailand, the Philippines, Malaysia and other Far Eastern nations are best picks for investors in the emerging market countries.
While Chinese and Japanese stock markets struggle, the trend is up for Thailand, the Philippines and other Far Eastern bourses.
Those three selections are in the group of emerging market countries with positive total returns for 10 years, 5 years, 3 years, 1 years, YTD and 3 months, while the BRIC countries have negative total returns for 5 years. Figure 1 based on MSCI index data makes that point.
Because the Thailand and Philippines ETFs do not have 10-year operating histories, it is helpful to look at charts of the MSCI indexes, as rendered by MSCI, for those countries, which have long histories. Figure 6 plots the MSCI total return of the select countries versus the MSCI emerging markets. Figure 7 shows the BRIC country total returns against the emerging market index.
On a 10-year basis the BRIC countries have done better than the emerging markets index, and the select countries (except for Thailand) have underperformed. However, more recently, the select countries are trending up while the BRIC countries are trending down.
Bangkok falls 19 places to 49th most expensive location worldwide
Locations reliant on international tourism have seen their rental markets hit especially hard during the pandemic, resulting in some major drops in the rankings. Bangkok has fallen 19 places to 49th, while Hanoi saw a similar drop of 12 places to 81st.
Is There a Silver lining amid COVID-19?
Thinking of the future impact of this pandemic on office buildings, it may have already dawned on many of us that a majority of potential long-term trends and health measures will become permanent work-life features in the times to come.
Can border reopening revive tourism in South-East Asia?
In Thailand, where pre-pandemic tourism accounted for 11-12% of GDP, the country lost an estimated $50bn last year as Covid-19...
Thailand dropped from UK’s tough covid-19 travel ‘red list’
Earlier, Thailand was listed among countries with high infection levels that were put on a ‘red list’, requiring arrivals to...
The ASEAN-Russia Trade and Investment Cooperation Work Program
ASEAN and Russia recently agreed to enhance and widen economic cooperation at the 10th ASEAN Economic Ministers (AEM)-Russia Consultations held...
Flexible Workspace Startup Worklounge Debuts with 20+ Luxury Member Lounges in Thailand
Worklounge launches a premium membership granting remote professionals and executives access to exclusive hotel lounges across Thailand. Their platform is...
5 insights to guide ASEAN’s digital generation in a post-pandemic world
We surveyed 86,000 people from six ASEAN countries about their views for a post-pandemic world. The ASEAN Digital Generation Report...