The “big movers” in the month of March show some familiar faces…
Notable Movers to the Upside:
- Japan… Continued its upward trajectory in the model, moving from 5th to 1st overall. While previously being pushed by accelerating momentum, Japan showed significant improvements to both valuation and fundamental ranks in March. Japan’s trailing P/E dropped from 26x to 20x, greatly improving its relative valuation scores.
- Australia… Showed the largest jump in the rankings, moving up 14 spots from 22nd to 8th. While it had slight improvements in the fundamental and risk rank, Australia’s move can be primarily traced to its momentum. Australia is the second hottest country in our model over the last 3 months, up 14.1%.
Notable Movers to the Downside:
- India… Fell for the second consecutive month, this time by 17 spots. It had double-digit drops in its fundamental, momentum, and risk scores. India showed the largest drop in month-over-month change in its OECD leading indicators from one year ago (-1.0%).
- Hong Kong… Dropped by 9 spots to 18th overall. The majority of this change can be attributed to an increasing risk rank. The Hong Kong Dollar now measures as overvalued in both relative and export competitiveness factors.
The model is currently overweight risk factors by 2%, neutral valuation factors, and underweight momentum and fundamental factors by 1% each.