I am writing this email to follow-up on my previous email which I mentioned a possible investment into Indonesia. My proposal is to switch some of the portfolio to Legg Mason SE Asia Special situation fund. This fund primary invest in ASEAN and has a big chunk of the portfolio in Singapore and Indonesia. Singapore, you are probably familiar with the market. It is Indonesia that interest me most right now.
Indonesia has a much more stable geo political situation after the big chaos after 1997 and it seems like the dust has settled. Prior to 97, Indonesia is the most important market in the region with the world’s third largest population and rich in resources. This country has traditionally been ignored by international investor due to their perception of instability and poverty. The truth is, stability has come again and the wealth of the nation has been growing at an unprecedented rate. The stock market has surpassed the highs seen before the financial crisis and has reached historical high. It is one of the few country in the world which has seen it market soar above the 2007 crisis. FDI seems to be flowing back in and the development of the commodity markets have increased interest throughout the world. This market is potentially more risky than the BRIC counterpart but if the government steers the country with care, we will see a new golden age and Singapore will be one of those to benefit.
1 comments:
An excellent post, Indonesia is not a country many would consider because of the perceived uncertainty of the situation on the ground.
In your analysis and management of investment decision's what portfolio analysis measure's do you use?
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