Global Bull Get “Thai-d” Up

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Prior to the recent rally, only a handful of global stock markets were trading in positive territory. You now hold three of them in your current Global Bull Market Alert portfolio — the iShares MSCI Chile Investable Mkt Idx (ECH), the Global X/InterBolsa FTSE Colombia 20 ETF (GXG) and the Market Vectors Indonesia ETF (IDX). All three hit record highs this week. In contrast, defensive positions like your bet on gold through the SPDR Gold Shares (GLD) have fared poorly, and you hit your stop of $115 yesterday, exiting at a loss.


This special Global Bull Market Alert pick adds to this list of top-performing markets of 2010 with the iShares MSCI Thailand Investable Market Index Fund (THD). A top performer since January, Thailand has been an exceptionally strong performer since the start of the summer. Just yesterday, Thai stocks hit a 26-month high — a far better performance than almost any other stock market in the world. And here’s why I think the Thai market’s strong performance is set to continue.

Since its economy was crushed in the Asian currency crisis of 1998, Thailand has staged an impressive comeback, transforming itself into a magnet for foreign investment. U.S. giants Ford and General Motors recently announced plans to expand their production facilities there. Japan’s Mitsubishi Motors also has assembly plants in Thailand, and Toyota is making the country the company’s export base for all of Asia and the Middle East.

Thailand is positioning itself as a leading destination for multinationals that are abandoning China. Many European, U.S. and Japanese companies are moving factories to Thailand from China to avoid labor strikes, higher prices, corruption and a generally unwelcome atmosphere of the Beijing government. Thailand is also simply a better deal. The annual salary for a Chinese Honda worker can run as high as $4,500 to $5,500 in China. Salaries are about one-third lower in Thailand.


Thailand’s economy is also on fire. Thai exports rose a stunning 46.3% in June, compared with the same month a year ago. That was not only the fastest pace since the early 1990s, but also eclipsed records set before the global financial crisis. No wonder the Bank of Thailand recently raised its 2010 economic growth forecast to 5.8%. The International Monetary Fund is far more optimistic. It expects the Thai economy to grow at a China-like 8%.

Exclusive  Are You a Trader or an Investor?

Thailand got some bad press earlier this year, as political demonstrations turned violent in the heart of downtown Bangkok. That said, the bloody political protests have died down and, according to the nation’s central bank, the overall economic impact was minimal.

So, buy the iShares MSCI Thailand Investable Market Index Fund (THD) at market today, and set your initial stop at $45. There are no options on this one.

Portfolio Update

iShares MSCI Chile Investable Mkt Idx (ECH) hit a record high of $63.83 yesterday. With risk appetite returning to global markets, ECH is a BUY.

iShares FTSE/Xinhua China 25 Index (FXI) continues to be the worst-performing market in the world after Greece in 2010. When global markets wobble, this will fall hard and fast. But with global markets rallying, this bet against China is a HOLD.

Global X/InterBolsa FTSE Colombia 20 ETF (GXG) rose to a record $38.72 yesterday. With the heavily weighted financial sector on fire, GXG is a BUY.

Market Vectors Indonesia ETF (IDX) hit a record high of $77.38 on Monday. As the strongest-performing market in Asia this year, IDX remains a BUY.

P.S. If you want to keep up with my latest insights on developments in fast-paced global markets, you can now follow me on Twitter on @NickVardy or on my new blog,

share on:

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops