There is comfort in belonging. Being part
of something bigger than ourselves can be colorful and exciting
as well. This photo taken at a recent Cotacachi Ecuador parade
shows the pageantry in belonging.
In fact belonging is so attractive to living
things that most form groups or herds. This phenomenon means
that most markets are usually wrong! The desire to belong
clumps investors, buyers and sellers into narrow minded mindsets
that push and pull prices beyond their correct realm.
This is why spotting trends through value
is so important as you can see below.
Our friend statistical expert, Michael Keppler,
continually researches many emerging 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 emerging
stock market's history and from this develops his Good Value
Emerging Stock Market Strategy.
Here is the recent review of Keppler's
emerging market developments & his outlook.
After recording their strongest monthly
gains in five years last January, Emerging Markets equities
are consolidating at around their all-time highs. This last
month, the MSCI Emerging Markets World Total Return Index
advanced 0.9 % in US dollars, but declined by 0.6 % in euros.
During the first quarter, the emerging markets
benchmark gained 12 % in US dollars and 9.2 % in euros. During
the last fifteen months, the MSCI Emerging Markets Index
gained 50.1 % in US dollars and 68.6 % in Euros.
Of the three regional indices, Asia led
with a monthly gain of 1.9 % this month, followed by Europe,
Middle East and Africa (EMEA), which advanced 1.5 %. Latin
America was down 2.3 %.
During the first quarter, Latin America
still stands out with a 15.6 % gain, versus EMEA (+14.4 %)
and Asia (+9.5 %).
Over the last fifteen months Latin America
leads (+73.4 %), followed by EMEA (+58.3 %) and Asia (+38.9
Performance numbers are in US dollars unless
Last month fifteen emerging markets we track
advanced and twelve declined. Three markets shone with double-digit
monthly returns: Venezuela (+18.1 %), Indonesia (+10.7 %)
and India (+10 %).
Turkey (-12.2 %), Egypt (-5 %) and Brazil
and Jordan (both down 4.7 %) performed worst.
Year-to-date, twenty-five markets are higher
and only two markets are down. Venezuela (+50.2 %), Morocco
(+39.2 %) and Russia (+28.3 %) performed best.
Jordan (-14.6 %), Israel (-3.4 %) and Taiwan
(+2.6 %) came in last.
There is no change in Keppler's
performance ratings this month. The Top Value Model Portfolio
contains the nine "Buy"-rated markets of Brazil,
China, Korea, Malaysia, the Philippines, Russia, Taiwan,
Thailand and Turkey at equal weights. According to his
performance ratings, these markets offer the highest expectation
of risk-adjusted returns.
You can get ideas on shares in these top
value emerging stock markets from Thomas Fischer at Fischer@jyskebank.dk
For more details on Keppler's analysis,
contact Roderick Cameron at 1-212-245-4304 or at email@example.com
Until next message, good global investing!
P.S. Join Merri, Thomas Fischer of Jyske
Bank and me at our next International Business and Investing
Made EZ course in North Carolina, May 26, 27, 28. A Review
where to invest and do business now and learn which markets
and currencies may be strong in the year ahead. Do not
delay we have only five spaces left! DETAILS
P.P.S. Double your profit potential with
the MultiCurrency Sandwich. Leverage investments in top value
Today's Health Tip: Today's health tip.
Eat dandelions.Â John Douillard's excellent book, Three
Season Diet, points out that we should have three diets we
vary through the year, low calorie-low fat in spring, high
carbohydrate in summer and high protein in winter. This creates
a food supply that fits the body's requirements as it shifts
to adapt to each of these seasons.
The spring diet should include lots of leafy green, bitter
vegetables and nature provides many during this time of the
year. Dandelions are one of the best.
Here is the recipe for Dandelion-Quinoa biscuits we serve
in El Meson at the Quinoa Cafe
1/2 cup coconut oil
1/2 cup panela, (dried sugar cane juice-or crude brown sugar)
1 tsp. vanilla extract,
1/2 cup flour, 1/2 cup ground quinoa
1 cup dry oatmeal, and 1/2 cup dandelion leafs or other bitter leafy greens.
1) Preheat the oven to 375.
2) Mix the oil and panela and then beat in the 2 eggs and
3) Stir in the flour, oatmeal, and greens.
4) Drop the batter by tablespoonfuls onto an oiled cookie
5) Bake for 10-15 minutes.