14.38-One Investments, the old Thai mutual fund noted for being very computer-modeling-like, says it it switching to holding cash as it analysis indicates the Thai stock market, SET, will be hovering around 570 by year end-ouch!

“Little things like the department of economics adjusting Thailand’s growth down just a little never bothered investors befor but today, it is big news and that pretty much says all there is to say about investors confidence,” said Chaiprug, MD of One.

He said Wall Street will continue to haunt investors and that will pretty much sap all interest in stock market investment away. On top of that he said he figure more funds and brokerage houses all over the globe will start to transform themselves into financial institutions and so to get their capital adequacy ratio of BIS under the rules, lots of selling of stocks will be occurring through out the world, and thuse lowering the standard price to earnings standard globally.

“There will not be a great deal of premium the market will support,” he said, adding that the only hopes lies in retail and small investors globally to come in and pick up the cheap pieces.

“Retail and small investors may return and it is important mutual funds start structuring their funds to attract this segment, who may not be so interested blue chip but want high growth and low price,” he said.