Where do we invest now?

by | Jun 7, 2002 | Archives

Our message last Saturday pointed out the great difficulties in investment markets now. So where can we invest? I asked eClub advisors for ideas and portfolios recommendations and here are a few things we learned.

First, Michael Keppler, the top value guru gives us the best value major and emerging markets, based on PE ratios, price to cash flow and dividend yields.

The best major markets now are: Austria, Belgium, Germany, Hong Kong and Norway. These equity markets by the way are supported by a rising euro. The ones major markets outlined to Sell include Canada, the U.S. and Switzerland.

The best emerging markets are Brazil, Czech Republic, Egypt, Korea and Philippines.

Canadian portfolio manager, Nigel Stephens, believes that stock markets should continue to outperform bond markets as economic growth and profits accelerate. Longer term they believe that stock markets will gravitate back toward their historical 7% to 8% per annum real return. Here is my portfolio with this firm.

Government of Canada Bonds 5.75% Sept. 06 Government of Canada Bonds 6% June 2011

US Treasury 4.625% May 06 US Treasury 5% Aug 2011 11% of portfolio is cash US dollars

Equities	Adidas Saloman AG	Ahold NV Org.	American Express	Amersham	Assa Abloy AB-B	Automatic Data Processing shares	Cable and Wireless PLC-Spons ADR	Carrefour	Cisco Systems Inc/	Coca Cola	Diageo Plc	Gannett Company Inc.	Home depot Inc.	IBM	Johnson & Johnson	Marsh & Mclennan Cos	McGraw Hill Companies Inc/	Medtronic Inc.	Microsoft Corp	Nokia Corp  Spon ADR	Procter & Gamble	Sanofi-Synthelab	SAP AG	Vodaphone Group PLC	WalMart Stores Inc.

London Broker NCL Investments is recommending Thematic investments which are portfolios based on factors driving long term growth. The themes they have identified are Demographics, Energy and Environment and they recommend investing in these areas.

Until next message good global investing!