World’s Biggest Pension Fund Plans to Start Investing in Emerging Markets



Japan’s public pension fund, the world’s largest, will start investing in emerging market stocks by the end of the year as it diversifies assets to maintain stable returns.
The Government Pension Investment Fund, which oversees 114 trillion yen ($1.5 trillion), is in the final stage of deciding the managers who will handle the investments, said Takahiro Mitani, president of the fund, known as GPIF. The investments will be focused on markets included in the MSCI Emerging Markets Index, he said.
“It looks like a good time to start investing in emerging markets,” said Mitani in an interview in Tokyo on Sept. 27. “Prospects for growth still remain strong for emerging markets relative to the developed countries, which means expected returns will be higher.”
The fund, whose majority of investments is in domestic bonds, is seeking better returns to cover payments in the world’s most rapidly aging society. The MSCI Emerging Markets Index has dropped 21 percent this year, more than the 12 percent decline by the MSCI World Index of developed stocks, amid inflationary concerns and as the European sovereign debt crisis prompted investors to sell assets deemed risky.
The shares of companies included in the emerging-market gauge, are trading at 9.9 times estimated 12-month earnings, compared with 12.2 times for stocks in advanced economies. Developing nations made up eight of the 10 best performers this year among 93 global benchmark stock gauges tracked by Bloomberg.

Emerging Economies

http://www.bloomberg.com/news/2011-09-29/world-s-biggest-pension-fund-plans-to-start-investing-in-emerging-markets.html


Technically Precious with Merv
For week ending 30 September 2011
The bulls are saying gold is ready to turn and go into new highs, the bears are saying watch
out below, I’m saying who knows?  The best I can say is where we are and the direction gold
(and silver) is headed.  But for how long and how far, that’s guess work or “predictions”.
GOLD
LONG TERM
The long term position of the gold price has not changed BUT is very close to doing so.  The
price has now dropped to the point that it is sitting almost right on top of the long term moving
average line and the long term FAN trend line shown here recently.  A close below the $1600
level would take gold below its moving average line and set the stage for a serious down
grading of the long term rating.  Gold could  move to the $1490 level or below, based upon
different P&F charts.  For now, let’s see how it ended the week.
Trend:   Gold close the week just above its still positive sloping long term moving average line.
The line has been turning towards the horizontal and getting close to turning downward should
gold close below $1600.  
Strength:   The strength of the recent long  term gold price move has been steadily
deteriorating.  However, the long term momentum indicator (my measurement of the strength
of the price move) is still in  its positive zone but some distance below its negative sloping
trigger line.  The trigger line turned downward in the third week of August and has been
steadily increasing its downward slope since.
Volume:   The volume indicator has now started its downward spiral having moved below its
long term trigger line.  The trigger itself turned to the down side on Wednesday and remains in
a downward slope.
At the Friday close the long term rating remains  BULLISH but is very close to being
downgraded should the price move lower.
INTERMEDIATE TERM
The intermediate term rating went bearish last week and nothing has happened this week to
change that.
Trend:  Gold remains below its negative sloping intermediate term moving average line.  It is
also below its intermediate term FAN trend line trapping the action between the intermediate
and long term lines.
Strength:   The intermediate term momentum indicator stayed in its negative zone throughout
the week and closed there. It is also below its negative sloping trigger line.                 Merv’s                                                                    http://preciousmetalscentral.com
  Precious Metals Central
Volume:   The volume indicator remains below its intermediate term trigger line and the trigger
is getting progressively weaker, i.e. turning more negative in its slope.
On the intermediate term the rating at the Friday close remains BEARISH.    This  bear  is  now
confirmed by the short term moving average line having moved below the intermediate term
line during the week.
SHORT TERM
 
The plunge in gold price seems to have stopped for now.  It even looks like we might get a rally
of some sort very soon.  However, that’s tomorrow.  Let’s look at today.
Trend:   As the chart shows, gold has basically been moving sideways these past few days.
However, it remains below its negative sloping short term moving average line.
Strength:   The short term momentum indicator has remained in its negative zone throughout
the week.  It did break just a hair above its trigger line on the Friday  close but the trigger
remains sloping downward.
Volume:   The daily volume action is about  as one would expect during a negative moving
price trend.  The volume was high on the volatile down days but cooled of a lot during the
sideways days.  We are waiting to see the daily volume activity improve on positive days but
that is not here yet.                 Merv’s                                                                    http://preciousmetalscentral.com
  Precious Metals Central
On the short term the rating at the Friday close was still a BEARISH rating.  This is confirmed
by the very short term moving average line remaining below the short term line.
As for the immediate direction of least resistance, where is my coin to flip?  With an improving
Stochastic Oscillator (although still in its negative zone) and the price activity during the week
remaining above its Monday low point I’ll go with the up side for a rally but wouldn’t put any
money on it until it moves above the $1680 level.
SILVER
Although gold remains above its  June/July levels silver has dropped below its previous
June/July support level and now the $34 mark is a resistance to any rally.  It did touch the $28
level mentioned last week leaving only the $13 as the next downside projection, at least from
the P&F perspective.  For now silver looks to have stabilized and may be ready for a rally but
needs to breach that $34 level to get any move on.
My silver commentary is usually shorter than my gold commentary.  I did go though the long,
intermediate and short term indicators last week and nothing much has changed for this week.
All three time periods remain BEARISH at the Friday close and I’ll omit the individual indicator
review this week.
Merv’s Precious Metals Indices Table
    30 Sep 2011 Merv's Precious Metals Indices Table
No.of  FRI WEEKLY SHORTER  TERM         INTERMEDIATE  TERM LONG  TERM
SECURITIES Stocks CLOSE % CHNG      MA  MOM  RS RATE      MA  MOM  RS RATE     MA  MOM  RS RATE
Merv's Gold & Silver 160 Index 160 4332.94 - 5.0% 4813.46 - - NEG - 18 NEG 5019.82 - - NEG - 18 NEG 5097.00 - - NEG - 21 NEG
   Merv's Gold & Silver 100 Index 100 432.53 - 4.3% 478.34 - - NEG - 17 NEG 496.31 - - NEG - 16 NEG 497.97 - - NEG - 19 NEG
      Merv's Qual-Gold Index 30 129.48 - 3.4% 140.29 - - NEG - 12 NEG 143.00 - - NEG + 9 NEG 138.96 - - POS + 8 NEG
      Merv's Spec-Gold Index 30 513.28 - 4.5% 568.74 - - NEG - 21 NEG 598.22 - - NEG - 20 NEG 609.02 - - NEG - 23 NEG
   Merv's Gamb-Gold Index 30 926.96 - 5.5% 1046.46 - - NEG - 20 NEG 1106.66 - - NEG - 22 NEG 1137.93 - - NEG - 20 NEG
   Merv's Qual-Silver Index 10 1719.77 - 4.8% 1922.41 - - NEG - 23 NEG 2020.49 - - NEG - 14 NEG 2016.70 - - NEG - 18 NEG
   Merv's Spec-Silver Index 25 2671.43 - 5.7% 2993.40 - - NEG - 14 NEG 3112.82 - - NEG - 21 NEG 3224.27 - - NEG - 22 NEG
Merv's Penny Arcade Index 30 2469.79 - 2.0% 2690.85 - - NEG - 22 NEG 2873.06 - - NEG - 24 NEG 3022.00 - - NEG - 24 NEG
S&P/TSX Global Gold Index 30 394.89 - 0.2% 411.55 - - NEG + 7 NEG 410.34 - - POS + 4 NEG 396.09 + + POS + 6 N
NYSE Acra Gold BUGS Index 15 526.19 - 1.9% 564.96 - - NEG - 10 NEG 574.23 - - NEG + 8 NEG 559.15 - - POS + 11 NEG
NYSE Acra Gold Miners Index 43 1526.99 - 2.2% 1642.69 - - NEG - 11 NEG 1670.72 - - NEG + 7 NEG 1627.72 - - POS + 13 NEG
PHLX Gold/Silver Sector Index 16 185.00 - 2.1% 200.17 - - NEG - 16 NEG 207.13 - - NEG - 15 NEG 206.69 - - NEG - 15 NEG
Dow Jones Precious Metals Index 13 375.55 - 1.7% 403.67 - - NEG - 15 NEG 416.84 - - NEG - 17 NEG 418.05 - - NEG - 16 NEG
Dow Jones U.S. Precious Metals  3 127.90 - 1.3% 132.74 - - NEG + 4 NEG 130.15 + - POS + 3 - N 123.43 + + POS + 2 POS
S&P Gold Index 1 148.32 + 0.2% 150.45 - - NEG + 3 NEG 145.67 + + POS + 2 POS 137.82 + + POS + 3 POS
CBOE Gold Index 8 225.68 - 2.1% 242.03 - - NEG + 9 NEG 247.03 - - NEG + 12 NEG 243.83 - - NEG + 14 NEG
FTSE Gold Mines GOLD MINES In 19 3527.11 - 7.0% 3818.52 - - NEG + 8 NEG 3866.94 - - NEG + 10 NEG 3788.51 - - POS + 9 NEG
   FTSE Gold Mines AMERICAS In 11 3061.55 - 6.3% 3301.79 - - NEG + 6 NEG 3312.13 - - POS + 6 NEG 3211.67 - - POS + 5 NEG
   FTSE Gold Mines AFRICA Index 4 3154.23 - 8.5% 3399.69 - - NEG + 5 NEG 3427.54 - - POS + 11 NEG 3376.40 - - POS + 12 NEG
   FTSE Gold Mines AUSTRALASI 4 14788.10 - 9.1% 16524.33 - - NEG - 19 NEG 17755.63 - - NEG - 23 NEG 18206.95 - - NEG - 17 NEG
Johannesburg Gold Index 6 2831.40 - 4.5% 2867.46 + - NEG + 1 NEG 2746.42 + + POS + 1 POS 2632.00 + + POS + 4 POS
U.S. Dollar Index N/A 78.55 + 0.1% 77.71 + + POS + 2 POS 76.08 + + POS + 13 POS 75.38 + + POS + 7 POS
Gold Bullion price N/A 1622.30 - 1.1% 1714.05 - - NEG + 13 NEG 1739.84 - - NEG + 5 NEG 1648.95 + - POS + 1 - N
Silver price N/A 30.08 - 0.1% 34.64 - - NEG - 24 NEG 37.92 - - NEG - 19 NEG 38.02 - - NEG - 10 NEG
   Developed by Hudson Aero/Systems Inc.,   Technical Information Group                Merv’s                                                                    http://preciousmetalscentral.com
  Precious Metals Central
 Well, that’s it for this week.  Comments  are always welcome and should be addressed to
mervburak@gmail.com.
Merv Burak, CMT
Hudson Aero/Systems Inc.
  Technical Information Group
                   for
Merv’s Precious Metals Central
01 October 2011
For  DAILY Uranium stock commentary and WEEKLY  Uranium market update check out my new  Technically
Uranium with Merv blog at http://techuranium.blogspot.com.
During the day Merv practices his engineering profession as a Consulting Aerospace Engineer.  Once the sun
goes down and night descends upon the earth Merv dons his other hat as a Chartered Market Technician (CMT)
and tries to decipher what’s going on in the securities markets.  As an underground surveyor in the gold mines of
Canada’s Northwest Territories in his youth, Merv has a soft spot for the gold industry and has developed several
Gold Indices reflecting different aspects of the industry.  As a basically lazy individual Merv’s driving focus is to
KEEP IT SIMPLE.
To find out more about Merv’s various Gold  Indices and component stocks, please visit
http://preciousmetalscentral.com.  There you will find samples of the  Indices and their component stocks plus
other publications of interest to gold investors.
Before you invest, Always check your market timing with a
Qualified Professional Market Technician