Emerging stock markets tend to perform best during times of currency turmoil. See the best six emerging markets for investing now.
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.
Based on this analysis he feels the best value emerging markets now are BRAZIL, COLOMBIA, CZECH REPUBLIC, KOREA, PHILIPPINES AND RUSSIA.
When currencies are volatile, inflation tends to rise and the only way to beat inflation is to have high returns. Emerging markets historically provide such gains. However these markets are also more volatile so be sure to look at the riskier low value emerging markets we review in tomorrow’s message. Until then, good investing.
Recent messages have looked at ways to protect against currency instability. Avoiding low value markets and investing in high value major markets is one way to cushion the effects of currency turmoil.
A second way is to invest in gold. See why at https://www.garyascott.com/archives/2003/11/26/948/index.html
Another way to gain currency safety is to invest in property that will appreciate. Jyske Bank for example recently reported that London property prices rose to their highest levels in 13 months. Click here for this report.
Add to this the fact that the pound has risen from 1.40 per pound to 1.73 and you can see how there are real profits rather than attractive numbers eroded by currency loss.
This is why we are taking a group to learn about real estate opportunity in old Quito, Ecuador. Details are at https://www.garyascott.com/courses/ibezecuador.html
Until then, good investing