France versus U.K. and U.S.
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Finance Portfolio Research and Analysis for August 11-15, 2008 <br>From our International research division and matching International strategy analysts, the following financial analysis excerpts are from revisions recently completed on International based investment portfolios:<br>From SCR Step 1 Analysis: No. D4 (Int'l) Financial Portfolio Research Revision for<br>[iShares (Wgt: MC)] MSCI France Index (EWQ) vs. [iShares (Wgt: MC)] Standard and Poor Global 100 with U.S. (IOO):<br>(1) Observation of Relative Strength: Results in the relative strength analysis of MSCI France Index (EWQ) versus IOO indicate that Standard and Poor Global 100 with U.S. (IOO) is fairly neutral to IOO on a relative basis. The interesting story with EWQ is that it is strongly outperforming Standard and Poor World ex-U.S. (GWL). The story continues with the U.K. nearly matching the relative strength results of France: MSCI U. K. Index (EWU) neutral to slightly underperforming IOO; however, outperforming the ex-USA database (GWL).<br>(2) Observation ? Regression: Comparison of the linear regression to the time-series that has a 3-period forward shift finds the following formation: The price is slightly below the linear regression, and the linear regression is equal to the time-series. Since the linear regression provides the best fit to the price path, this has near term neutral implications for EWQ.<br>(3) Observation ? Price Performance: MSCI France Index (EWQ) shows a continuation of a fairly neutral price path (flat slope) on fairly weak indicators. Thus, depending on global economic events, the price path could go in any direction.<br>[Reference Charts: D4-11 (relative strength); AD4A-7a (regression); AD4B-7b (price)]<br>First, and furthermore, for most investors, a diversified investment portfolio approach combining stocks, bonds, money market securities, etc., is optimal. While financial diversification cannot protect against a loss from a declining market, it can reduce the overall portfolio's volatility. With the globalization of information technologies, college education becomes a prerequisite to most careers. A goal of successful investing thus becomes crucial in providing the upper level education necessary for a successful future for your children.<br>Second, in consideration of that goal, studying the information available on this site, which has been kind enough to host our research in this article, will help.<br>At www.StrategicCapitalResearch.com, we provide additional finance educational materials to what you find here in both investment books and videos. Between the two sites, you should be able to find enough information to get started toward achieving your education investment goals.<br>Third, to the above analysis excerpt, the usual disclaimers apply. Since all Strategic Capital Research publications provide research that is conducted using historical data, a reminder needs to be made that the analysis of past market reactions cannot predict future market actions. In particular, no amount of historical data can predict the sudden changes that occasionally occur in financial markets.
About the Author
The SCR Analysts represent the collective voice of the researchers at Strategic Capital Research (SCR). We provide global financial analyses, and subsequent strategies, from countries to companies. Copyright 2007-2008.<br><br>[SCR] Research
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