October 2013 Country Rankings

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:

PDF imageCountry Portfolio Notes October 2013

Top 6 October Countries

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