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Indonesia Market Crash

edited August 2013 in Fund Discussions
Apparently, this has been happening, but I never heard anything about it.

Trouble in Indonesia

Comments

  • May not be entirely due to market factors- there is a lot of political tension there at the moment due to a power struggle.
  • edited August 2013
    Hot money flows out of what was a very hot market for a while. Still a very interesting country long-term. You could say the same about a lot of EM.
  • Okay let it crash 50%, then we can buy:)
  • That's what I hope WAFMX is doing!
  • According to Bloomberg, it is the threat of the Fed taking away the punchbowl in Sept. Sounds like the standard media babble to me. The rupee has been hit hard.

    Indonesia is an interesting case. It has not fully participated in the bull market like the Philippines and Thailand. Also a lot of pressure especially from Australia on the asylum seeking refugees that come out of Indonesia after they travel from other countries. Australia has shut the door saying that anyone who comes in on boat will not be settled in Australia. About 10,000 refugees a month were flooding the Australia coast from all parts of the Middle East and Asia. This was obviously putting a large burden on social services as Australia had been taking care of them beforehand. Indonesia still has a large presence of Islamic terror groups and the western world keeps a good eye on them. Corruption is still a big problem too.
  • Maybe it is time to load up on some palm oil producers like ADM and JMHLY but these are not pure palm oil plays and of course there are some environmental concerns with palm oil production and then there is the orangutan problem too.
  • edited August 2013
    Reply to @Hogan: If you want pure palm oil, I'd go with Wilmar, which has done lousy. (http://sg.finance.yahoo.com/q?s=WLMIY&ql=0)

    Diversfied ag w/Palm Oil, maybe Bunge (http://www.bunge.com/citizenship/sus_palm_oil.html)



  • "Citizenship?"
  • I am not saying anyone should buy Indonesian stocks now, but at some point some brave souls will step in, load up, and reap some big-time rewards. It takes a lot of guts to buy stock in a true EM country when all heck appears to be going on.
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