This is an interesting ‘tell’ on the Thai Stockmarket, in fact the Thai economy in general.
Apparently the rumour going around is that many advertisers are not paying their bills to the magazines and papers and this is causing major problems for the publishing companies themselves. So much so that one English speaking paper is rumoured to forced into selling some of its prime assets.
Business 101 suggests that when companies start to renege on their advertising all is not well and is also an indicator of the underlying economy
Don’t believe the Bank of Thailand’s figures, and it goes without saying not to believe any politician or Government agency
Independent economists are suggesting the best barometer to watch is the local real estate market which has been strong over the last 5 years
Summary: The Thai stockmarket has not been a good performer over the last 5 years in relation to some of the other Asian tiger markets. For example, it’s only just doubled from the 1998 debacle. And with political problems, rampant consumer borrowing things are certainly looking dicey.
If we were shareholders we’d be selling and putting the money into the Taiwan market.
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