Country Ranking Model - December 2022
December Country Rankings
Norway (#1): No change to our top 3 countries this month. Norway remains in first spot with very strong fundamentals, valuations and risk. While medium term momentum has slowed, Norway consistently ranks near the top of our universe in earnings yield, earnings growth and ROE. With inflation lower than its neighbors in the European Union (6.5% vs 11.5%) and a strong labor market, Norway’s economy looks resilient as global economic growth decelerates.
Brazil (#2): Brazil continues to lead our universe in terms of fundamentals. The country registered impressive real GDP growth of 3.6% in Q3 2022 and has excellent earnings growth and ROE. Brazil has a dynamic economy and a population of 201 million. There are many reasons to believe that the country will continue to grow its representation in world equity indices.
Chile (#3): Chile’s number 3 ranking is supported by a low government debt to GDP ratio, solid governance indicators and a track record of credible macroeconomic policies centered on an inflation-targeting regime and flexible exchange rate. On the negative side, the country is highly dependent on commodity exports, particularly copper.
Country Performance
Data as of 11.30.2022
Source: MSCI
Country Ranking Model
As of 11.30.2022
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