Styles RouteMap: Market Profiles

A sample report on an investing style or economic sector

 

Contextual help is also provided when subscribers select a Profile

 

ETF, US closed-ended funds and UK investment trusts specialising in Demo Sectors listed at bottom of market profiles

 

Countries & Regions

 

 

 

DEMO SECTOR
See Notes at Right of Page       Month End: mmm yyyy
Example of a Styles Profile
 
Forecasts Summary Opinions History Structure Funds
           
Earnings Forecasts Since 1986 2008 a 2009 a 2010 e 2011 e
EPS (1995=100)   186.9 227.7 270.8 122.0
EPS Change (%) 10% 10% 22% 19% -55%
Real EPS Change (%) 7% 10% 20% 15% -56%
Relative EPS Change (%) 6% -12% 20% 7% -42%
PE Ratio 29.1 14.3 15.5 7.0 15.5
Relative PE Ratio 115% 81% 91% 89% 150%
Character This sector is more sensitive to changes in the economy than blue chips. This is a result of greater financial and operational leverage as well as specifically higher exposure to industrial sectors, such as building and engineering, in many regions.

Hence chamges in industrial production are the key indicator for this Style. Over the past quarter century there have been seven periods of accelerating output growth.
Prospects Not only cyclical but also secular factors are now in favour of this sector. Balanced fund managers generally failed to use their flexibility to switch between asset classes during the biggest divergence between stock and bond markets in decades.

As a result of it, pension plan sponsors are splitting up their funds between a variety of specialist managers, including this sector, so this investing style is benefiting from a positive flow of funds.
Investment Opinions   Local Dollar Global Region
    Investors Investors Investors Investors
  Recommended Action Add Add Buy Trim
           
Trend Strategies Forecast Revisions Sell Sell Sell Sell
  Liquidity Trends Sell Sell Sell Sell
  Chart Analysis Sell Sell Buy Sell
  Seasonal Patterns Buy Buy Buy Sell
           
Investor Sentiment Opinion (12 Months) Hold Hold Trim Add
           
Valuation Ratios PE Ratio / Bond Yield Buy Buy Buy Hold
  PE Ratio / Interest Rate Buy Buy Hold Add
  Replacement Cost Buy Buy Hold Add
  Real Earnings Yield Buy Buy Buy Hold
           
Key Historical Events October-06 $24 Bill. Stock market stabilisation fund  
  September-08 US Banking Crisis    
  July-08 Foreign investment curbs eased  
  March-08 Rightwing coalition wins general election  
  November-07 Demoland ETF listing    
           
 History This sector has been a steady long term performer, except in Japan where the collapse in the market since 1990 has held it back. While cyclical movements can be largely related to changes in industrial production there have been distinct long term changes
  They outperformed from the depth of the Oil crisis of 1973 to the peak of the Japanese boom in 1990, then underperformed till 1998, since when the disproportionate weighting of growth shares generated renewed outperformance.
Structure  The representative indices have all been chosen for comparability - broad coverage, capitalisation-weighted and similar methods of calculation. Where there is insufficient back history, comparable data from other sources has been retrofitted by chaining.

These indices are chosen to represent the performance of all of this sector, not just its dominant sub-sector.
Key Indicators Local Investors:        Industrial Production (Current Prices)
Dollar Investors:       Industrial Production in Current US$ Prices
Regional Investors:   Industrial Production (Change %)
Global Investors:       Real Effective Exchange Rate
           
Region Component Index Volatility Correlation Weight  
United States S&P 5.3% 95% 40.0%  
Japan / Asia Tokyo SE 4.4% 92% 7.5%  
United Kingdom FTSE 6.1% 87% 6.5%  
Euro-Zone Euro-STOXX 6.2% 81% 12.1%  
Europe STOXX 6.1% 85% 23.3%  
World Investors RouteMap 5.8% 100% 100.0%  
           
Political System Demoland has governed under a democratic system since 1975, when life membership of the Upper Chamber was abolished. The President is elected by the Parliament every four years.
Funds Available Sponsor Symbol Listing Type Liquidity
           
Sector Fund iShares VAL NYSE Index ***
           
Copyright © 2010: 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.