Global Value Market Update

by | Nov 8, 2002 | Archives

Michael Keppler reports his latest market value update and explains why the State Street Global Advantage Major Markets High Value Fund continues to be ranked #1 in three year performance compared to its peers and why it is down only about 12% in dollars this year. This fund's largest draw down is only about half compared to the average fund.

Michael compares every major market monthly looking at their current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return on equity compared to their average and relative vales and compares them to all other markets. Based on this research he determines which markets offer top value (buy candidates), low value (sell candidates) and which are neutral.

Michael writes:

“Right now we find plenty of bargains, especially in Europe. At its worst point 10 days ago, German stocks were down 70% from their 2000 high, this makes the decline worse than that in the 30s, when they dropped only 65%.

Take care and continue to tell everybody, that the world is not coming to anend! Best regards to you + Merri, Michael”

This connects with what I wrote in a recent message suggesting that markets may be nearing a bottom and may rebound for 19 to 32 months. One greatly increases their odds by choosing to invest in markets that have the best values.

Keppler recommends Austria, Belgium, Germany, Hong Kong and Norway as the best value major markets at this time. Low value markets (with sell ratings) include Canada, Denmark, France, Japan, Netherlands, Switzerland, and the U.S.

Neutral markets are Australia, Italy, Singapore, Spain, Sweden and the United Kingdom.

Emerging markets have mirrored major markets but during the free fall held up significantly better than major markets (as predicted). The best value markets according to Keppler at this time are: Brazil, Czech Republic, Egypt, Korea and the Philippines.

Sell markets (poor value) include Hungary, India, Israel, South Africa, Taiwan and Turkey. Neutral markets are Argentina, Chile, China, Indonesia, Malaysia, Mexico, Morocco, Peru, Poland, Russia and Thailand.

Michael is an eClub advisor and you can learn more about him at and his value selection system at

State Street manages funds based on Keppler's recommendations. For more details go to:

Until next message good investing!