June Country Rankings
June 8, 2017 · by Dustin Blodgett · Filed under Portfolio Notes
- Global equities continued to climb higher in May, with the MSCI ACWI up 2.21%. The average country was up 3.15%, and the range of returns for May, between countries, was 14.42%%.
- The United States continues to fall in our country rankings. Now ranked 15th overall, the U.S. suffers from expensive Valuations, increased Risk, and deteriorating Momentum. The U.S. has a 3.1x P/B ratio (vs a country avg. of 1.9x) and a 18x 12mo Forward P/E ratio (vs a country avg. of 14x). Over the last 3 months, the U.S. is the sixth worst performing country, up 2% vs a country avg. of 8%.
- China and Korea remain our #1 and #2 ranked countries. Both exhibit cheap Valuations and better than average Fundamentals. China has the best Earnings Growth (19% vs country avg. of 11%), followed closely by Korea (17.5%). Korea has the best Growth/PE ratio (1.4x vs a country avg. of 0.6x) followed closely by China (1.2x). We expect these countries to continue to stay at the top of our rankings.