When stock markets are tough we need every advantage we can get. One way to gain one extra advantage is to invest in markets which offer the best value. Here are the seven best major and seven best emerging markets from a value point of view now.
My friend Michael Keppler of Keppler Asset Management offers a unique service that values every stock market in the world looking at its PE ratios, price to book value, price to earnings and return on equity. From this he values all the markets each month and makes buy or sell recommendations. One of the worlds largest mutual fund managers (State Street ) manages two mutual funds based on these recommendations. Currently the seven major stock markets with the best value are:
Australia, Austria, Belgium, Germany, Hong Kong and Norway and the UK.
The best buy emerging markets are:
Brazil, Colombia, Czech Republic, Korea, Slovakia, Sri Lanka and Venezuela.
These markets are at a better value, relative to their norm, than any other market and are Keppler's buy recommendations now (except the UK on which he is neutral). He still has a sell recommendation for the U.S.
Yet this does not tell us where to invest within these markets. One way when available is to invest in an index investment that represents the index of that country. This of course is still gambling, (a calculated gamble yes, but still a gamble.
The best bet is still to stick with what you know. In other words if you are an expert is software businesses then look for such firms that are listed in these countries. It is also equally important to look at the specific companies to see if they also offer good value.
If you have these three steps in place, you will a big advantage over investors who do not do this type of research.
- An investment in an industry that you understand.
- An investment in a company with good value.
- An investment in a market with good value.
Keppler now believes that this is an excellent time to add to both or either one of the Global Advantage Subfunds (Major Markets and/or Emerging Markets) managed by State Street Bank and Trust. Both funds have had stellar performance, especially after the New Economy-Bubble burst in March last year. The Emerging Markets Subfund received its 4th Standard & Poor's/Micropal Performance Award since inception in 1993 for best performance among global emerging markets funds in 2000.
Investors who are interested in investing in the Global Advantage Funds should identify themselves as “Gary Scott E-Club Clients”. This way they qualify to invest without any sales-load.
To invest please contact State Street Bank Luxembourg S.A.
Tel. +352 46 40 10 379 or 481
Fax. +352 26 43 13 25 For questions regarding the investment strategies please contact
Keppler Asset Management Inc. in New York.
Tel. +1-212 245 4304
Fax. +1-212 262 8150
Until next message, good global business and investing!