June 2013 Country Rankings
June 12, 2013
Japan & Turkey remain at the top of our model while Germany ranks 3rd. The United States & Thailand are 4th & 5th again respectively with South Korea moving into the June model.
Global Landscape
- The United States continues to drive Global Equity market performance. The largest constituent at 45.6% of the MSCI All Country World Index was up 3.51% on the month and is up 16.59% for the year.
- Emerging Markets remain a significant laggard to developed markets. On the year, emerging markets have underperformed developed markets by 15.41%
Country Return Drivers
- Investing in countries with cheap absolute and relative valuations was the dominant driver of country returns in May.
- Fundamental, Momentum, and Risk based factors all detracted from country selection.
Country Ranking Model
- Turkey and Japan remain our most favored markets for June despite heavy volatility during the closing weeks of May.
- Latin America remains the most underweight region with Brazil, Chile, and Mexico all in the bottom of the rankings.