The third way

by | Jan 26, 2004 | Archives

The third way to protect against the falling US dollar is to invest in good value markets abroad.

eClub expert Michael Keppler looks at all foreign stock markets and 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.

Our last message at showed two ways to protect against the declining U.S. dollar. We can see why this third approach in value markets makes sense as well.

Keppler’s latest report (January 2004) shows that the U.S stock market performance was 17th of the 18 major market in the last year.

Stock Market % 1 Yr. Change

Germany 63.8%

Sweden 64.5%

Spain 58.5%

Austria 57.0%

Canada 54.6%

Australia 49.5%

Denmark 49.3%

Norway 48.1%

France 40.2%

Hong Kong 38.1%

Italy 37.8%

Singapore 37.6%

Japan 35.9%

Belgium 35.3%

Switzerland 34.1%

United Kingdom 32.1%

USA 28.4%

Netherlands 28.1%

As the U.S. dollar falls and there is currency turmoil, we especially want to invest in markets that have the greatest potential for growth and diversify in many currencies.

Learn in tomorrows message which markets are bets value now.

Until then, good investing.