International Investments in Major Markets. An Update

by | Nov 19, 2007 | Archives

International Investments Major Market Value Analysis – October – November 2007

The best way to create long term 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

Despite the effects of the sub-prime mortgage crisis on the financial markets, global equities reached new all-time

highs in both local currencies and in US dollars. However, in euro terms, the Morgan Stanley Capital International (MSCI) World Total Return Index (with net dividends reinvested, December 1984=100) still hovers some 16 % below its all-time high reached in August 2000.

In October, the MSCI World Total Return Index advanced 2.1 % in local currencies, 3.1 % in US dollars and 1.3 % in euros. Year-to-date (through the end of October), the MSCI World Index gained 10.3 % in local currencies, 15.2 % in US dollars and 5 % in euros.

Sixteen markets advanced in October and two markets declined (all performance numbers are in local currency unless mentioned otherwise).

Hong Kong (+10.7 %) was the best performing market, followed by Spain (+9.7 %) and Austria (+5.7 %).

Sweden (-4.1 %), Japan (-0.1 %) and the Netherlands (+0.2 %) came in last.

Year-to-date fourteen markets are up. Hong Kong (+45.8 %), Singapore (+31.1 %) and Germany (+22.7 %) performed best.

Japan (-1.7 %), Belgium (-1.4 %), Austria and Italy (both down 0.3 %) came in at the bottom of the range.

There are no changes in our performance ratings this month. The Top Value Model Portfolio contains Belgium ,

France, Germany , Italy , the Netherlands , Spain and the Untied 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 , Hong Kong , Japan , Singapore , Switzerland , U.S.A.

NEUTRALLY RATED MARKETS Australia , Norway , Sweden .

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. Here is the 2006 performance.


US Dollar Long 9.04%

US Dollar Short 10.43%

US Dollar Hedge 11.46%

Emerging Market 42.93%

Asia Emerging Market 114.16%

Here is the 2007 performance

Dollar Neutral 38.67%

Dollar Short 48.19%

Swiss Samba 53.32%

Emerging Market 122.62%

Green 266.30%

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 Multi-Currency Portfolios we are tracking in our Borrow Low-Deposit High Multi-Currency Sandwich Educational Service. Details are at

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


Join us at a course soon! Our delegates have a great time. Here are delegates checking out our new house in Cotacachi inside and out.

Here they are enjoying our colonial meeting room at the museum next to El Meson de las Flores .

Our course fees are rising for our 2008 courses. Since we have had only one price increase in over 20 years we are forced to make a substantial increase now.

We are accepting early enrollments for our 2008 courses at the 2007 price for about two more weeks so if you sign up now, you’ll save.

Here is the entire 2008 schedule below showing the early enrollment and soon to be prices.

If you plan to come to three or more courses next year the best option is the International Club at $1,999. All the courses below are included. The new price will be $2,999. You can enroll in the club for 2008 (though the catalog says 2007) at

Jan. 18 – 23 Ecuador Spanish course

Sign up now for one at $549 before the fee rises to $799. Or sign up for $799 for two before the fee rises to $999.

Jan. 18-23 Spanish Course & RE Tour and Jan. 24-25 2008 Imbabura Real Estate Tour

Sign up for one now at $899 before the fee rises to $1,199 or $1,199 before the fee rises to $1,599 for two.

Feb 18-23 Ecuador Import Export Course

Remains the same at $999 and $1,499 for two.

Mar 7-9 International Investing and Business Made EZ Ecuador

Sign up now for one at $549 before the fee rises to $799. Or sign up for $799 for two before the fee rises to $999.

Mar 10-11 Imbabura Real Estate tour

Mar 12-14 Coastal Real Estate tour

March IBEZ plus 1 real estate tour.

Sign up now for one at $899 before the fee rises to $1,199. Or sign up for $1,199 for two before the fee rises to $1,599.

March IBEZ plus 2 real estate tours

Sign up now for one at $1,199 before the fee rises to $1,499. Or sign up for $1,599 for two before the fee rises to $1,999.

April 10-14 Ecuador Spanish course

April 15-16 Imbabura Real Estate tour

May 13-17 Ecuador Import Export course

May 23-25 International Investing and Business Made EZ North Carolina

$549 up to $799. For two $749 up to $999.

June 11-15 Ecuador Spanish course

June 16-17 Imbabura Real Estate tour

June 19-21 Shamanic Mingo Tour

Sign up now for one at $549 before the fee rises to $799. Or sign up for $799 for two before the fee rises to $999.

Sept 23-27 Ecuador Spanish course

Sep 28-29 Imbabura Real Estate tour

Oct 3-5 International Investing and Business Made EZ North Carolina

Oct 14-18 Ecuador Import Export Course

Nov 7-9 International Investing and Business Made EZ Ecuador

Nov 10-11 Imbabura Real Estate tour

Nov 12-14 Coastal Real Estate tour

From December 1, 2007, El Meson de las Flores will charge between $59 and $70 per night including a full served breakfast. They will continue to offer a prepaid 30 day Hometel Plan (you can stay the month all at once or in segments. The rate is rising from $899 for a single to $999 and $999 for a couple to $1,099.