France versus S&P Global 100 & U.K. & U.S. - By: S.C.R. Analysts

Finance Portfolio Research & Analysis for August 11 – 15, 2008

From our USA research division and matching USA strategy analysts, the following financial analysis excerpts are from revisions recently completed on USA based investment portfolios:

SCR Step 1 – Analysis: From No. D4 (Int’l) Financial Portfolio Research Revision –
[iShares (Wgt: MC)] MSCI France Index (EWQ) vs. [iShares (Wgt: MC)] S&P Global 100 with U.S. (IOO):
(1) Observation – Relative Strength: Results in the relative strength analysis of MSCI France Index (EWQ) versus IOO indicate that S&P 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 S&P 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).
(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.
(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.
[Reference Charts: D4-11 (relative strength); AD4A-7a (regression); AD4B-7b (price)]

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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.
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 pension investment goals.

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. [SCR] Research & Analysis with Excerpts at Strategic Capital Research, LLC.

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