Coup
If you haven’t heard, there was a coup in Thailand. Check out the attached picture of the stock market index in Thailand.
I would have expected a negative reaction. Investors are not fond of uncertainty, and political upheval is certainly a major source of uncertainty.
But stock markets are forward looking. News that is expected does not alter markets – this information is already priced into the market. News that is unexpected does move the market.
Did the market expect the coup? Or is that the market likes the coup – thinking that the next political regime will be superior for the business environment?
Stay tuned. The exchange is closed tomorrow, but may open again as soon as Wednesday.
–CT