Major Equity Market Valuations

by | Feb 15, 2008 | Archives

Major Equity Market Multi Currency Investments Major Market Value Analysis January – February 2008.

Major market multi currency investing is one of the best ways to protect wealth if attention is paid to investing value.

The best way to create long term multi currency 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.

In my opinion, he is one of the best market statisticians in the world.

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

There was no place to hide in January 2008: all Major Markets covered here lost ground with thirteen markets suffering double-digit percentage declines.
The Morgan Stanley Capital International (MSCI) World Total
Return Index (with net dividends reinvested, December 1984=100) declined 8.4 % in local currencies, 7.6 % in US
dollars and 8.8 % in euros.

The decline across all markets was so widespread that it did not make much of a difference in which currency the performance was measured. As is characteristic for a “Loser’s Game”, the winners were those who lost least: Canada (-4.4 % in local currency), the US (-6.1 %) and the United Kingdom (-8.8 %) demonstrated relative strength.

Norway (-20.9 %), Germany (-14.9 %) and Austria (-14.5 %) fared worst.

During the last thirteen months (also measured in local currencies), five markets advanced and thirteen markets declined.

Compared with end-of-2006 levels, Hong Kong performed best with a gain of 25.1 %, followed by Canada (+5.1 %)
and Germany (+3.8 %).

Belgium (-22 %), Austria (-21.2 %) and Japan (-18.5 %) suffered most over the last thirteen months.

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 United Kingdom at equal weights.

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

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

NEUTRALLY RATED MARKETS Australia , Japan , 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 one of 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%

However the 2008 portfolios we are now tracking have not been immune from the 2008 turmoil and they have all dropped as well. Several of the leveraged portfolios have dropped dramatically.

Learn how to see and learn from the performance of these portfolios at

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


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