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  • What Countries Are Hot? What Should A Momentum Investor Look At Now? [View article]
    TJ, Portugal and Austria could be very interesting. They just don't fit in to a momentum framework right now.

    Andras, Germany has suffered recently, but has good longer-term performance. Hopefully that makes sense.

    Oguz, you may well be correct. Our only point is that Turkey is the best performing market in the last 90 days, but one of the worst over the last 12 months. If you have a short-term momentum framework, that will lead you to a different conclusion than if you have a long-term view.
    Aug 14, 2014. 03:51 PM | Likes Like |Link to Comment
  • Europe: Market Capitalization Vs. Smart Beta [View article]
    Designshoe,

    I'm not sure exactly what you are referring to. We should quit writing, investing or both?

    The Global Opportunities strategy has indeed struggled. As any manager knows, even a well-designed strategy can underperform for long periods of time...especially a concentrated strategy.

    It is unfortunate that you feel the need to judge our entire business on one product, and in a timeframe that represents less than 20% of the life of our firm. Such is the nature of our business, I guess.

    Good luck in your own investing.
    Jul 10, 2014. 02:37 PM | Likes Like |Link to Comment
  • What Countries Are Hot, And What Should A Momentum Investor Buy Now? [View article]
    This is a pure momentum play, but it should not be surprising given Australia's link to natural resources. Most of the countries with heavy resource exposure have done poorly over the last 12 months.
    Mar 17, 2014. 02:22 PM | Likes Like |Link to Comment
  • What Countries Are Hot, And What Should A Momentum Investor Buy Now? [View article]
    Soccerdad,

    I meant to say that South Africa and Israel are inexpensive, and the rest are more expensive. The list of countries that are attractive depends entirely on your point of view. If you want countries that have strong momentum, then the ones at the top of this list are good candidates. Value buyers would be looking at very few of those countries right now.
    Mar 17, 2014. 02:21 PM | Likes Like |Link to Comment
  • What Countries Are Cheap For A Value Investor To Buy Now? [View article]
    scoots,

    Of all the countries out there (besides the US), China is the one market that has more slicing and dicing of its market than any other.

    I'm a big fan of some of the funds you are talking about. Along with the traditional country ETFs from iShares, Market Vectors and State Street, both Kraneshares and Global X have really cool products.

    The biggest difference relative to what we're talking about here is the fact that the valuations on those consumer-focused and internet/tech-focused funds are much higher than those of the country basket. This analysis is just to show one aspect of relative attractiveness at a country level, and is not intended to be a complete ranking system.
    Mar 10, 2014. 11:54 AM | Likes Like |Link to Comment
  • What Countries Are Cheap For A Value Investor To Buy Now? [View article]
    jakoba,

    Right now, we only look at 32 of the 45 ACWI countries, and Greece is not one of them. We'll consider expanding the universe for future updates, though. Thanks for the suggestion.
    Mar 10, 2014. 11:48 AM | Likes Like |Link to Comment
  • What Countries Are Cheap For A Value Investor To Buy Now? [View article]
    TJ,

    That is a good point. If EM countries do catch a bid, you could easily see them continue to show up as value plays, while moving up the relative strength rankings. That's when things get really interesting.
    Mar 10, 2014. 11:47 AM | Likes Like |Link to Comment
  • What Countries Are Cheap For A Value Investor To Buy Now? [View article]
    We don't put the list out every month, but perhaps will update it quarterly or something like that.
    Mar 10, 2014. 11:46 AM | Likes Like |Link to Comment
  • Does International Diversification Work? [View article]
    The MSCI All Country World index (cap weighted) includes somewhere around 46% US, 36% Developed non-US, and 18% emerging markets exposure. Most US investors don't have anywhere close to 54% of their portfolio outside the US. Investors outside the US exhibit the same home country biases, but to an even greater extent. For example, by law, Mexican pension plans can't have more than 9% of "International" assets. Mexico is 0.6% of world market cap, so I would call that a pretty substantial overweight.

    The normal US paradigm that a 20-30% allocation to non-US stocks is the right allocation. However, that's a huge overweight in the US. Most investors are willing to take that position because they feel better about owning the US market...after all, it is the biggest market in the world.

    As non-US markets outperform the US, the recommended allocations go up. As the US outperforms, everyone questions the validity of "international" diversification. It's cyclical, just like everything else. It is, however, easier for an advisor to sell their client on putting more money in to markets that have outperformed. It's much harder to sell the client on putting money in to markets that have underperformed, especially if the client has little experience in investing in one of those "backwater countries."
    Feb 20, 2013. 03:06 PM | Likes Like |Link to Comment
  • The Truth About Low Volume ETFs [View article]
    Well said, Eric. It should also be noted that the closer you are to trading in creation unit size, the tighter the spread will be. It seems counterintuitive, but you get better execution as the size of your order increases. In ETFs with creation unit size of 50,000 shares, it is much easier to trade 225,000 shares than it is to trade 25,000.
    Oct 9, 2012. 11:02 AM | Likes Like |Link to Comment
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