The November model shows emerging markets and European markets with the biggest upside moves, while Japan had the biggest relative to move to the downside. Despite this, Japan still remains the most attractive country in the model. Along with the United States, the two countries combine for 70% of the model allocation in November.
Notable Moves to the Upside
- South Africa … moved up 12 spots from 18th overall to 6th. South Africa has shown positive moves in both fundamentals and momentum. They are the second best performing market over the last 6 months, up 16.7%.
- Italy … had the second largest move on the month in terms of relative attractiveness. Although still ranked 28th overall, their risk ranking has had a noticeable improvement. Momentum is strong in Italy, but fundamentals are still at the bottom.
Notable Moves to the Downside
- Japan … did not move away from the top spot, but they had the largest drop in relative attractiveness. The majority of the move came in deteriorating momentum and increased risk.
- Australia … fell 7 spots from 19th to 26th. They showed declines across the board. Their valuation profile is consistently expensive on both an absolute and relative basis.
For more on countries, strategies, and movement in the model, see our full Portfolio Notes: