In October, Asia remains the most favored region, as Japan, China, and Korea are all overweights. Emerging markets finally turned a corner as 5 of the 6 best performing markets in the past month were emerging. Meanwhile, the United States has shown a significant move lower, which is creating additional opportunities for these international and emerging markets.
Notable Moves to the Upside
- Spain … moved up 9 spots from 29th to 20th overall. Spain has shown drastic improvements in their momentum score and is the best performing country over the last 3 and 6 months.
- Turkey … moved up 10 spots from 25th to 15th overall. They had improvements in both their momentum and risk rankings. Turkey is the second chepaest country we follow, trading at a 9.9 P/E ratio.
Notable Moves to the Downside
- India … dropped 12 spots from 14th to 26th overall. The majority of their move came in their fundamental rank where they had rapid deceleration of their OECD leading indicators.
- United States … fell 5 spots from 5th to 10th. After a month of below average performance, the US showed deteriorating fundamentals, slowing momentum and increasing risk.
For more on countries, strategies, and movement in the model, see our full Portfolio Notes: