Peter,
I'm not sure about the implications of the foreign-owned
versus locally-owned shares. I have been trying to cover
as many angles here as I can, since these investments are
exotic and I don't want to lose my shirt. (It seems that
you and John have covered most, if not all, of the other
angles.)
If the WEBS Malaysia and Siam Selective also primarily own
local shares and price NAV in the same fashion (I'll try to
check with the WEBS Malaysia), than it seems to me that the
the premiums of TTF and MF truly reflect how overpriced they
are.
If not, than the shorting strategy may still be sound, but
there appears to be some added risk that the premiums on the
foreign shares could disappear, hence partially justifying
a portion of the premiums.
What portion of the premiums might be justifiable, I have no
idea. I would guess that TTF is still way overvalued. Of
course, I'm no expert analyst here so take everything I
say with a grain of salt.
MCsweet |
