International stock markets to avoid

by | Mar 15, 2004 | Archives

Here is valuable data about international stock markets from Morgan Stanley and the MCSI Capital Index, plus Michael Keppler about international stock markets to avoid. These include the Canadian, Hong Kong, Japanese, Singapore, Swiss and the U.S. stock markets.

eClub expert Michael Keppler looks at all foreign stock markets and compares every major market monthly looking at the 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 evaluation here are the markets he feels are low value and which should be sold. They remain as they were last month: Canada, Hong Kong, Japan, Singapore, Switzerland and the USA.

The U.S. market is particularly dangerous at this time because the U.S. dollar is falling as well.

You can see some examples of why Keppler views these as the low value major markets by comparing their price to book value and price to cash flow valuations with the top value market averages.

The average price to book value for the six top value markets is 1.92 and price to cash flow 7.1

See the low value market comparisons below.

    Country        Price/Book       Price/Cash Flow
Canada 2.21 9.0
Hong Kong 1.62 16.0
Japan 1.65 8.5
Singapore 1.69 10.7
Switzerland 2.91 17.4
U.S.A. 3.18 13.6

Keppler rates Australia, Austria, France, Spain, Sweden and the United Kingdom as neutral, so consider these for a holding pattern now.

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

Until next message which looks at emerging markets, good investing.