- Global equities continued their negative slide during January, with the MSCI ACWI down -6.03% and the average country down -5.13% in USD.
- The average country is down -15% in the last six months. There are no countries with positive performance in that time period.
- Over the last 5 years, Emerging Markets have underperformed developed markets by 59% and the US by 88%. This highlights the need to be selective in the EM space.
- Japan remains the top ranked country in our February rankings. It has the best Risk profile with low standard deviation and tightening CDS spreads. Current Bloomberg market consensus expects a 10% depreciation of the Yen.
- Austria had the largest upward move in our rankings joining Germany and Belgium as the only other developed European countries ranked in the top 10. Austria has the second lowest risk and sixth best momentum of our country universe.
- China had the largest drop in our rankings, despite having the second best Fundamental and Valuation ranks. China’s short and medium term price momentum and poor political risk scores dragged the overall country ranking down.