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!