This month, Japan improved on its position as the #1 country in the model, as they continue to show a balanced profile with all four factor groups in the top ten of the model. Meanwhile, Norway was the newest European country to move into the top part of the model. Though they have had slower momentum than the rest of Europe, they are benefiting from low risk and cheap valuations.
Notable Moves to the Upside
- Japan… had the largest increase in relative attractiveness and further solidified its position as our #1 country. They showed improving momentum and decreasing risk. Japan has been the best performing country over the last 9 and 12 month periods.
- Mexico … had the largest move on the month in terms of their absolute rank as they jumped 14 spots. Mexico is the least risky country in the model, but the most expensive country we follow.
Notable Moves to the Downside
- South Africa … fell 23 spots from 6th to 29th. Their drop came from increasing risk and deteriorating momentum. The CDS in South Africa is over 200 and has been increasing rapidly.
- Peru … had the second largest drop in relative attractiveness and is now the least attractive country in the model. They have consistently been the worst performing country this year, down over 30% during the last 12 months.
For more on countries, strategies, and movement in the model, see our full Portfolio Notes: