Investors in Thailand and Vietnam must expect a bumpy ride

Political turmoil can be a buying opportunity. But that doesn't mean investors should now be eyeing up Thailand, where the market has slumped. Upheaval is a buying signal if a resolution is within sight, says Credit Suisse. Here, it isn't.

Political turmoil can be a buying opportunity. But that doesn't mean investors should now be eyeing up Thailand, where the market has slumped to its lowest level since February last year and is trading on a pe ratio of ten and yielding just over 5%. Upheaval is a buying signal if a resolution is within sight, says Credit Suisse. Here, it isn't.

Violent clashes between government supporters and opponents prompted the government to declare a state of emergency last week. The protesters insist that the government bought the votes of the poor and want a parliament appointed largely by the military. Now the constitutional court has ordered prime minister Samak Sundaravej to resign after ruling that he had breached conflict-of-interest rules by making paid appearances on a television cooking show. The governing coalition has been meeting to decide on his successor. As analyst Marc Faber puts it, Thailand is "a political mess" and the ongoing stalemate between government and opposition forces seems set to continue.

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