International Investments – November 2006 International Investments Major Market Value Analysis


International equity investments that have the greatest profit potential are those with the best value.

International investments expert and our friend, Michael Keppler, continually researches many international major stock market investments and compares the value of these international investments 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 international investments Market Strategy. His analysis is rational, mathematical and does not worry about short ups and downs of international investments.

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

In local currencies and in US dollars, global equities reached yet another all-time high at the end of November. Due to the strength of the euro, however, the world equity benchmark index remains 22 % below its all-time high in euros (reached in August 2000).

In November, the Morgan Stanley Capital International (MSCI) World Total Return Index advanced 1.1 % in local currencies and 2.4 % in US dollars, but lost 1.4 % in euros.

Twelve markets covered in this publication achieved positive returns in November and six markets declined. Singapore (+6.0 %), Hong Kong (+5.7 %) and Canada (+4.8 %) were the strongest markets in their home currency.

Belgium (-1.8 %), Sweden (-1.4 %) and the Netherlands (-1.1 %) performed worst.

Year to date, Spain (+30.8 %), Singapore (+28.0 %) and Norway (+24.1 %) performed best (in local currencies). Since all major markets advanced during the first eleven months 2006, even the worst performing markets had positive returns: Japan (+1.6 %), the United Kingdom (+11.2 %) and the Netherlands (+12.6 %).

There is no change in our performance ratings this month. The Top Value Model Portfolio contains Belgium, France, Germany, Hong Kong, Italy, the Netherlands and Singapore at equal weights. Our current ratings suggest that these markets offer the highest expectation of risk-adjusted performance.

SELL CANDIDATES include Austria, Canada, Denmark, Japan, Switzerland, U.S.A.

NEUTRALLY RATED MARKETS, Australia, Norway, Spain, Sweden, United Kingdom.

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

For more details on Keppler's analysis, contact Roderick Cameron at 1-212-245-4304 or email roderick.cameron@kamny.com

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 http://www.garyascott.com/catalog/bldh

Natural Awakenings to Natural Health – As Above Soy Below

“As Above – So Below”

Good, real value comes from wholeness and few phrases are as useful in seeing value as “As above – So below”. We can see many things using the wisdom in this idea.

Modern science points out that this is true. Fractal geometry shows us that everything is composed of smaller pieces of the same stuff. Wherever we look, we can use our logic to know that what’s above and what’s below is the same in some way.

Ancients had figured this out and the science of astrology exists to this day. This is why Merri and I are sponsoring the course “Inspired Investing Beyond Logic” taught by our astrologer, Blaine Watson, this January 5-7, 2007. See garyascott.com/catalog/va/

Yesterday’s message looked at how soy may clog our inner energy channels so it is not surprising to learn that the growing of soy is clogging up our environment as well. If you missed this see garyscott.com/international_investments/international_investments_132.html

Soy, it seems, clogs a lot more than our internal energy channels. It may be a clog in our political system. Soy was not used much as all in the West until after WWII when a process was created to deactivate an enzyme inhibitor in the protein meal so that animals could digest it. Then Nazi technology created a way to neutralize Soy oil's horrible smell and flavor. The US jumped on this because American agricultural conditions are well suited for soy. Soy exports to Europe tripled under the Marshall Plan. Yet soy is heavily subsidized. Between 1998 and 2004 soy farmers received $13bn in subsidies. This helped Cargil, the grain merchant, become the world’s largest privately owned company.

This leads to a huge environmental concern. The US remained the largest exporter of soy until a few years ago when the attraction of cheap Latin American land and labor led to huge soy farms financed by Cargill, the largest privately owned company in the world, to be created on razed rainforest.

Soy farming now leads cattle and timber as the biggest factor contributing the rainforest's destruction.

Brazil with its huge Amazon rainforest is now the world's largest exporter of soya.

Cargill has opened a soy port in Santarem, Brazil, a riverside city hundreds of miles upstream into the Amazon, nearly 50 million acres, (about the size of Britain) have been turned over to soy farming.

In the past three years, nearly 42,000 square miles of the Amazon rainforest have been destroyed.

There is a cycle of deforestation. State-owned reserves are infiltrated by loggers and ranchers looking for "free land." They clear the land, use it and then sell it for soy farming so intensive that eventually the soil can no longer sustain a harvest. The cutters then move to new areas and the process is repeated. Rich rainforest that supports incredible biodiversity can be reduced to a desert.

So soy may be bad for us at an inner and outer level, “as above, soy below”.

Ecuador Opportunity – be a Micro Coach

See below how vendors like this offer incredible value that can help you gain fun and profit

“As above-so below” also tells us why turning our passion into profit in business and investing helps create profit.

When we look within for little things that are important to us, we are looking at needs of an entire market place. There is no way to understand a need better than by looking at yourself and no more powerful way to create the courage of your convictions than doing this.

A message sent by one of our courses delegates explains this better.

"Gary, Ever since I came back from Ecuador after attending your seminar-which I so thoroughly enjoyed-I have been aware that I would like to start up a small business and in doing so help the Ecuadorians in some tiny way.

"It has also become an obsession that in the future I must spend part of my winters in that wonderful country! (I think in one of my past lives I have lived there!) I bought sweaters from Galeria Latina and have shown them to friends and they created a lot of interest. I do not have a lot of capital so cannot buy huge amounts of stock. There is already an English company which sells Peruvian clothes through a catalogue and some of their sweaters sell for over $800! I ordered a dress for my niece a couple of years ago and it took 6 months to arrive!”

This reader was using the As Above, So Below concept perfectly to tune her Ecuador business, buying sweaters she liked, testing them on friends and trying out the competition.

The wonderful thing is Ecuador has so many varied and unusual products, almost anyone can find something they love and create a path way from that joy to a market of others who share this passion. Plus if we can spread wealth around in other ways less people will need to tear up the rainforests to survive in the short term.

Ecuador is filled with really skilled labor, like this famous weaver.

See more pictures of his work at of his work at successguidelines.com/international/international_marketing_15.htm

We’ll have our next Import-Export Course Feb. 20 – 25, 2007. Tues.-Sun. http://www.garyascott.com/catalog/impex/

This is why we are pleased to introduce our Micro Coaching program that we will begin at our next import-export course. Merri and I are funding a Micro Lending program. This gives these wonderful workers ways to get started with small interest free loans. We have identified 49 women who are a cooperative in Cotacachi to begin with. These are not women who are selling in the markets, etc….these are women who don’t even have enough money to buy thread!

However the money we lend them does not give them markets! The Micro Coaching program will. At the course we help delegates match their knowledge with an artisan so they can work together to build a niche and an exclusive market. The craftsperson has the skill. You, the business person, knows what will sell and how a product must be modified for this one special area you know.

This is a program worthy of attention and we hope you’ll join us. No money is needed to be a Micro Coach…we’ll make the loans…what is needed is caring, a desire to help and of course following your passion to profit.

Until next message, may all your passions bring you profit and joy.

Gary

P.S. Get out of the cold, ice and snow. Join us this winter in Ecuador.

Jan. 22 – 26, Mon. – Fri. Self-Fulfilled: How to Be a Writer & Publisher. http://www.garyascott.com/catalog/pc/
Mar. 9 – 15, Fri. – Thurs. Expanded Super Thinking + Spanish. http://www.garyascott.com/catalog/sp7/
Mar. 16 – 18, Fri. – Sun. International Business and Investing Made EZ. ($799 for two). Ecuador. http://www.garyascott.com/catalog/IBEZec

Wood carvings and art are one of the numerous Ecuador products that are excellent for export if they are properly modified to fit markets you know.


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