eClub expert Michael Keppler looks at all foreign stock markets and compares every emerging 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.
Wednesday's message looked at the top and low value major markets. Emerging markets fared worse in the last month than the major markets. Nineteen of the 27 markets rated declined and all three emerging market indices, Europe Mid-East (down 10.6%), Latin America (down 10.5%) and Asia (down 6.2%).
Based on Keppler's analysis, the best value emerging markets now are BRAZIL, CHILE, COLOMBIA, CZECH REPUBLIC, KOREA, PHILIPPINES AND RUSSIA. Chile was a new addition to the buy list last month and SRI LANKA is a new addition this month.
You can get ideas on shares in these markets from Thomas Fischer at FISCHER@jyskebank.dk
Keppler currently rates EGYPT, INDIA, INDONESIA, ISRAEL, PAKISTAN, PERU and THAILAND as low value markets to reduce or avoid.
ARGENTINA, CHINA, COLOMBIA, HUNGARY, JORDAN, MALAYSIA, MEXICO, MOROCCO, POLAND, SOUTH AFRICA,TAIWAN, TURKEY AND VENEZUELA are neutrally rated markets.
Until next message, good investing.