International Investments December 2006 Major Market Value Analysis

by | Jan 19, 2007 | Archives

International investments offer the highest potential when you invest in good value.

Our friend, Michael Keppler, continually researches many international investments in major stock markets and compares their value based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return. He compares each major stock market’s history. From this he develops his Good Value Major Stock Market Strategy. His analysis is rational, mathematical and does not worry about short ups and downs.

Here is a summary of Keppler’s current comments on recent international investment developments & outlook in international major markets.

Major international investment equities finished a strong year on a strong note. In December, the Morgan Stanley Capital International (MSCI) World Index climbed 2.6% both in local currencies and in euros and 2% in US dollars.

In 2006 this benchmark for global equity investors advanced 15.6% (versus 15.8% in the previous year) in local currencies, 20.1% (9.5 %) in US dollars and 7.4% (26.2)% in euros.

All eighteen major international investment markets covered here had positive returns in December. Performance is in local currency, unless mentioned otherwise. Sweden turned in the best monthly performance with an 8.3% gain, followed by Austria (+8.2%) and Norway (+7.5%).

The US and Canada (both up 1.2%) and Spain (+2.2%) finished last in December.

For the fourth consecutive year all eighteen major international investment markets provided positive returns in 2006. I can only repeat what I said here one year ago: The recovery of the equity markets of the developed world, which began in Spring 2003, has been very broadly based.

The three best performing major international investment markets of the year were Singapore (+35.5%), Spain (+33.6%) and Norway (+33.4%).

Japan (+7.3%), the United Kingdom (+14.6%) and the United States (+14.7%) were the “underperformers” of 2006. Japan was particularly disappointing for European investors since, due to its weak currency, Japan was the only losing market in euro terms with a negative return of 5 percent.

Considering the fact that equal weighting of major international investment markets again outperformed the market-cap. weighted MSCI World Index by a wide margin (6.5 percentage points in local currencies after 10.9 percentage points the previous year) global diversification was again the name of the game for equity investors in 2006.

There are two changes in our performance ratings this month. Spain is upgraded from “Neutral” to “Buy” and Hong Kong is downgraded from “Buy” to “Neutral”. During the nine months when Hong Kong was rated “Buy” it had an annualized total return of 30.2% as compared to a total annual return for the MSCI World Index of 12%.

After adding Spain and eliminating Hong Kong, the Top Value Model Portfolio contains Belgium, France, Germany, Italy, the Netherlands, Singapore and Spain at equal weights. Our SELL CANDIDATES include Austria, Canada, Denmark, Japan, Switzerland, U.S.A.

NEUTRALLY RATED MARKETS, Australia, Norway, Hong Kong Sweden, United Kingdom.

You can get ideas on shares in these top value emerging stock markets from Thomas Fischer at

For more details on Keppler's analysis, contact Roderick Cameron at 1-212-245-4304 or email

Jyske Bank uses a good value system to help us select shares for Multi-Currency Portfolio Educational Tracking Service. This has worked pretty well. In 2006 the mainly equity portfolios we tracked rose 42.93% (Emerging Market) and 114.16% (Asia Emerging Market) in a year. This year, after the first month of tracking, our two new mainly equity portfolios are up at a 191.16% (Green) and 53.28% (Emerging Markets) annual rate.

You can learn why in a sixteen page email report about how 13 economic forces now clash to shape investments markets ahead that show the rewards and the risks. The report also outlines the five new Multi-Currency Portfolios we are tracking in our Borrow Low-Deposit High Multi-Currency Sandwich Educational Service. Details are at

You can read the balance of this message about how Ecuador real estate flies high at

P.S. Join us in the Ecuador sun this winter. Here is a schedule of the courses Merri and I will sponsor and or conduct.

Jan. 22 – 26, Mon.- Fri. Self-Fulfilled: How to Be a Writer & Publisher.

Feb. 20 – 25, Tues.-Sun. Import-Export Course.

Mar. 9 – 15, Fri.-Thurs. Expanded Super Thinking + Spanish.

Mar. 16 -18, Fri.-Sun. International Business and Investing Made EZ.

Mar. 19 – 21, Mon.-Wed. Andes Extension & Real Estate Tour.