How The Political Events In Thailand Could Torpedo One Of The Hottest Investing Booms Around

The election of Yingluck Shinawatra in Thailand marks a populist turn for the country, a trend that has spooked investors of late.

Up until recently, Bangkok stocks have been on a steady downtrend, as Shinawatra rose in the polls.


But Thailand aside, political risk in emerging markets is not particularly high on the list of concerns of global investors, who have been pre-occupied by Europe, the Mideast, the Chinese hard-landing (something of a separate issue) and the creaky US recovery.

In fact, emerging markets have been seen as something of a safe haven, in contravention of past trends.

This chart (which is a few months old) shows the incredible flow of money into emerging market debt, something you wouldn’t expect to see if instability were a major concern.


The latest events in Thailand should bring political risk back onto investors’ radar.

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