June 2013 Country Rankings

This month, Turkey and Japan remain our favored markets, despite heavy volatility during the closing weeks of May. Russia does not see a place in this month’s model, as Germany and South Korea move in on its standing.

Notable Moves to the Upside

  • Germany moved up 3 spots from 6th to 3rd overall.  They offer the most balanced profile of any country in the top part of the model.  Improving momentum and risk should help Germany be a mainstay for months to come.
  • Italy moved up 5 spots from 26th to 21st overall.  While we are still underweight Italy across our strategies, they are showing improving fundamentals, momentum, and valuations.

Notable Moves to the Downside

  • Australia fell 11 spots from 14th to 25th overall.  They have one of the worst fundamental makeups and have shown rapidly decelerating momentum.  Australia has moved from a neutral weight to an underweight in our model.
  • Russiafell 5 spots from 3rd to 8th overall.  In addition to poor momentum, Russia’s fundamentals and risk profiles have started deteriorating, which helped push Russia out of the top 5.

PDF imageCountry Portfolio Notes June 2013

 

Highest Ranked June Countries

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