Emerging markets guru Mark Mobius says he continues to be bullish on the long-term prospects in Thailand despite the violence engulfing the country in recent weeks.
Templeton's Mobius, known as the ‘godfather of emerging markets', says he has seen numerous political clashes in the nearly 15 years investing in Thailand.
Mobius believe this clash, the worst in two decades, will definitely result in political changes for the country. He says this makes him more bullish on the country.
"While the current political crisis in Thailand poses big headline risks to stocks over the short term, it is not new or unexpected for the country," Mobius.
"Since absolute monarchy was abolished in Thailand in 1932, there have been about 20 successful and failed coups, numerous unrests, and several changes in the constitution.
"The series of political issues from the Asian crisis in 1997 to recent fears of the Thai King's waning health late last year, have not impacted the long-term growth outlook for Thailand.
"Our investment philosophy and process stresses the importance of having a long-term investment perspective, and companies are typically assessed based on a 5-year investment horizon."
Until last week, Mobius says Thailand was one of the three best performing stock markets in Asia ex-Japan since the start of 2010.
"Despite numerous political uncertainties in the past, several of Thailand's blue-chip corporations have outperformed their peers in more stable countries in the region," he adds.
"Valuations of the stock market remain attractive with estimated P/E of 11.6 times, P/B of 2.1 times, and yield of about 3%."
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