This post was just published on ZYX Emerging Markets ETF Alert.
We are downgrading Thailand to Mild Sell from Neutral in the short-term, Mild Sell from Neutral in the medium-term, and Mild Sell from Buy in the long-term.
We have previously been informing you about the risks in Thailand if the Prime Minister Yingluck Shinawatra does anything to help her brother. Her brother Thaskin Shinawatra was Prime Minister from 2001 to 2006. In a coup he was overthrown by the military. Since then he has been in exile.
There are rumors that Yingluck Shinawatra could be indicted for issuing a passport to her brother.
Thailand has two major factions known as Red Shirts and Yellow Shirts. Yellow Shirts represent the establishment and Red Shirts represent supporters of Thaskin.
The risks of another showdown are increasing.
Conservative investors who invest only on the long side, may consider taking substantial profits on THD that have accrued since we upgraded Thailand to Buy in the long-term.
Aggressive investors may consider initiating a small short position and accumulating it on bounces. The ETF of choice is THD.
Caution: new subscribers please carefully study Trade Management Guidelines before initiating a short position.
