Portfolio Notes - December 2022
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
Country Ranking Model
Disclosures: This information was produced by and the opinions expressed are those of Accuvest as of the date of writing and are subject to change. Any research is based on Accuvest proprietary research and analysis of global markets and investing. The information and/or analysis presented have been compiled or arrived at from sources believed to be reliable, however Accuvest does not make any representation as their accuracy or completeness and does not accept liability for any loss arising from the use hereof. Some internally generated information may be considered theoretical in nature and is subject to inherent limitations associated therein. Any sectors or allocations referenced may or may not be represented in portfolios of clients of Accuvest, and do not represent all of the securities purchased, sold or recommended for client accounts.
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.