Country Ranking Model - November 2023
November Country Rankings
Poland (#1):
Poland is the best performing country in our universe year to date, up approximately 25%. It is ranked 1st in terms of momentum, ranked 2nd in fundamentals and ranked 3rd in valuations. Polish stocks defied a global sell off in October as a bloc of pro-European opposition parties unseated the nationalist government in the recent elections. Investors are betting that the new administration will help unlock funds frozen amid disputes between the European Commission and the outgoing party who had governed Poland for the last eight years. Strategists across the Street have turned more positive on the Eastern European country.
Italy (#2):
Italy is another country with excellent momentum (ranked 2nd), attractive valuations (ranked 4th) and strong fundamentals (ranked 10th). Italy has been given a boost this month as Moody’s has raised the country’s sovereign debt outlook to stable from negative and kept the country’s investment grade credit rating (Baa3). In another vote of confidence, spreads between Italian and German bonds have narrowed significantly in recent weeks, suggesting that concerns over underlying stress in the Eurozone monetary union may be unfounded.
Austria (#3):
Austria has the second most attractive valuations in our universe. To illustrate, it has an earnings yield of 16% and a price to book value of 0.8. In contrast, the USA (as measured by the MSCI USA index) is the most expensive country in our universe with an earnings yield of 4.5% and a price to book ratio of 3.8. Austria’s #3 overall ranking is also supported by low risk (ranked 6th), high momentum (ranked 11th), and decent fundamentals (ranked 15th).
Country Performance:
Data as of 10.31.2023
Source: MSCI
Country Ranking Model
As of 10.31.2023
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The reader should not assume that any investments in sectors and markets identified or described were or will be profitable. Investing entails risks, including possible loss of principal. The use of tools cannot guarantee performance. The charts depicted within this presentation are for illustrative purposes only and are not indicative of future performance. Past performance is no guarantee of future results. Actual results may vary based on an investor’s investment objectives and portfolio holdings. Investors may need to seek guidance from their legal and/or tax advisor before investing. The information provided may contain projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or targets will be achieved and may be significantly different than that shown here. The information presented, including statements concerning financial market trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.