Major Market Update

by | Aug 23, 2007 | Archives

Major market updates for July to August 2007.

The best way to create long term major market investment profits is to get good value in the shares you buy.

One way we keep track of value is to follow the analysis of our friend, Michael Keppler. Michael continually researches international 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.

He is in my opinion one of the best market statisticians in the world and numerous very large fund managers use his analysis to manage funds. In January, his company, Keppler Asset Management, was, for the third consecutive year, named Best Fund Company in the Fund Specialists’ category by Capital, a leading German business magazine. Keppler’s firm was one of only six out of 100 companies tested that received the highest five-star rating based on an independent evaluation of fund quality, management, and customer service by Feri Rating & Research and Steria Mummert Consulting.

Once a month we share Michael’s analysis with you.

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

Recent Developments & Outlook In July, global equity markets had their worst monthly returns since May 2006. The Morgan Stanley Capital International(MSCI) World Total Return Index declined 2.2 % in US dollars and 3.5 % in euros.

Year to date (through the end of July), the MSCI World TR Index has advanced 6.7 % in US dollars and 2.8 % in euros. The US dollar has lost 3.7 % year-to-date versus the euro to 1.3689 as of the end of July.

Of the eighteen markets covered here, five advanced and thirteen declined in July.

Hong Kong (+7.1 %), Denmark (+2.4 %) and Spain (+0.5 %) gained most.

Austria (-6.2 %), Belgium (-5.3 %) and Japan (-3.7 %) came in at the bottom of the range of monthly returns.

Year to date, Singapore (+21.8 %), Germany (+15.2 %) and Denmark (+14.8 %) gained most.

Italy (-1.6 %), Belgium (+0.4 %) and Austria (+1.7 %) came in last.

Performance numbers are in local currencies unless mentioned otherwise.

There is one change in our performance ratings this month: Singapore is downgraded to “Sell” from “Neutral”.

There is, however, no change in the Top Value Model Portfolio, which contains Belgium, France, Germany, Italy, the Netherlands, Spain and the United Kingdom at equal weights.

Our current ratings suggest that these markets continue to offer the highest expectation of risk-adjusted returns.

SELL CANDIDATES (Low Value) Austria, Canada, Denmark, Japan, Singapore, Switzerland, U.S.A.

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

Keppler’s current ratings suggest that these markets continue to offer the highest expectation of risk-adjusted returns.

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

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

Jyske Bank is the second largest Danish bank with 450,000 domestic clients, 35,000 international clients, USD 23 Billion in total assets, and a Moody’s rating of AA1. Jyske has over 35 years’ specialization in private banking and Denmark is ranked by Moody’s as the safest country in the world to have a bank account in.

Jyske Bank uses a good value system as well and their affiliated fund management company has been rated #1 by Morningstar. They use this 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 the five portfolios we track are up in the past nine months:

PortfoliosDec 29 Mar 27June 28Aug 10
Swiss Samba8.10%16.15%44.80%38.00%
Emerging Market15.11%12.81%54.31%61.27%
Dollar Short12.91%20.12%33.81%29.48%
Dollar Neutral7.94%16.58%37.64%29.13%

You can learn why this performance has taken place 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

At our upcoming International Business Made EZ in N.C., we will update our latest multi currency portfolios and much more. Join us September 14 – 16, 2007 in North Carolina,

Or come to Ecuador November 9-11. See

Until next message, may all you global investments be good.