Forex RouteMap: Market Profiles

A sample report on a foreign currency

 

Contextual help is also provided when subscribers select a Profile

 

ETF specialising in Demoland listed at bottom of market profiles

 

Countries & Regions

 

 

 

DEMOLAND
See Notes at Right of Page       Month End: mmm yyyy
Example of a Forex Profile
 
Forecasts Summary Opinions History Structure Funds
           
Earnings Forecasts Since 1986 2010 a 2011 a 2012 e 2013 e
Currency / US$   186.9 227.7 270.8 122.0
Total Return (US$) 8% 10% 3% 5% 4%
Real Interest Rate 3.9% -0.2% -0.5% 0.6% 0.7%
Relative Real Interest Rate 3.6% 0.4% 1.1% 1.6% 1.6%
Current Account / GDP 0.4% 2.8% 2.4% 1.9% 1.7%
Summary The Asian perpetual growth machine suffered when the currency collapsed in value during the 1997 crisis. However Demoland has re-emerged as a radically improved entity attractive to international investors, now led by the reformist government. 
  Excess re-emerged among consumers as they discovered credit cards, but in all other aspects, South Demoland is now a solid investment, with a reformed banking system as its economy moves up the value chain. The benefits of the devaluation have not yet worn off
Investment Opinions     Dollar Global  
      Investors Investors  
  Recommended Action   Add Buy  
           
Trend Strategies Forecast Revisions   Sell Sell  
  Liquidity Trends   Sell Sell  
  Chart Analysis   Sell Buy  
  Seasonal Patterns   Buy Buy  
           
Investor Sentiment Opinion (12 Months)   Buy Add  
           
Valuation Ratios REER (Unit Cost)   Hold Buy  
  REER (Consumer Prices)   Trim Hold  
  Real Interest Rates   Buy Add  
  Real Earnings Yield   Buy Hold  
           
Key Historical Events September-11 Euro-Zone Govt. Debt Crisis  
  September-10 Levy on foreign bank deposits    
  August-08 US Banking Crisis  
  March-08 Rightwing coalition wins general election  
  August-07 US Discount Rate rate down from 5.25%
           
Political History For investors the single most important political event was the victory of left-wing opposition party in the elections. This led to adoption of the IMF rescue policies, the break up of the conglomerates and increasing access to foreign investors.
  After the crisis, the reforms of the financial sector were  substantial
Growth & Inflation There was a recession in 1980 due to the oil crises and global economic downturns. Another recession occurred in 1998 as a result of the deflation of domestic demand following the IMF rescue package. Inflation peaked in 1980.
Forex Market History Until end 1983 the exchange rate was fixed against the US$. However since then, over the long term it has steadily depreciated owing to the typical emerging market tendency towards worse inflation. However there have been substantial cyclical swings. These were largely
  explained my changes in the current account. Thus the currency suffered major declines and crises in 1986 and 1997. While it has since recovered by a half, it has not made good all of its crisis loss.
Economic Structure The economy of this country has tone of the highest exposures to industrial production among industrialised countries among OECD countries. This is 46% of GDP and 13% more than average.
  Economic Statistics Demoland World Period Source
  Population Growth (%) 1.0% 0.5% 2000-2005 UN
  GDP Growth (%) 6.2% 2.3% 1980-2006 UN
  Rate of Inflation (%) 2.8% 3.4% 1980-2006 UN
  GDP per Head (US$) $27,700 $34,600 2005 UN
  Agriculture / GDP (%) 3% 1% 2006 CIA
  Industry / GDP (%) 45% 24% 2006 CIA
  Services / GDP (%) 52% 74% 2006 CIA
           
Political System After interruptions by military dictatorship, Demoland has a Presidential system, using a system of checks and balances with both elected Presidency and Congress. However until recently the DJP and its successor have controlled all organs of state.
President Election: N/A Govt. System: Parliamentary Orientation: Rightwing
Parliament Election: Mar/2012 Election Cycle: 4 Years Administration: Coalition
           
Funds Available Sponsor Symbol Listing Type Liquidity
           
Currency Fund Rydex DOL NYSE Index ***
           
Copyright © 2012: Investors RouteMap Ltd., an Appointed Representative of Integral Asset Management Ltd, which is authorised and regulated by the Financial Services Authority to carry out investment business in the United Kingdom. Please read Financial Health Warning and Licence Agreement. UK laws apply exclusively. Principal sources: Consensus Economics, CFTC, FIBV, Global Financial Data, national governments and stock exchanges. Information and opinions are based on sources believed to be reliable and accurate. However the company does not guarantee this to be the case, and does not accept liability for any loss arising. These tables are for information only and do not constitute a solicitation to deal in any securities. Opinions are liable to change. Past performance is no guarantee of future success.

Click for next lesson
Next Class

Market Profiles is part of the free international investment seminar. Just follow the classroom signs alongside. At the end of each class, there is a sign to the beginning of the Next Class. You can join the classes at any stage.