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May Country Ranking Portfolio Notes

We saw big moves from the United States and Thailand to the upside, while Japan and Turkey continue to hold down the top two spots. Link to Country Ranking Notes

Notable Moves to the Upside:

  • United States… Moved up 5 spots from 9th to 4th overall. Outside of relatively expensive valuations, the US has a top quartile ranking in all three other factor groups. Their risk rankings are buoyed by a low CDS and Political Risk. Their Fundamental Rank is helped by long term OECD measures as well as a high ROE.
  • Thailand… Moved up 6 spots from 11th to 6th overall. They showed marginal improvements in Fundamentals, Momentum, and Risk. Thailand has one of the best Fundamental profiles and is the 4th best performing country on the year, up 13.5%.

Notable Movers to the Downside:

  • Switzerland… Fell 11 spots from 5th to 16th overall. The majority of their move came from increasing risk and slowing momentum. The Swiss Franc is the second most overvalued currency by our measures, both relative to our country universe as well as in terms of their export competitiveness.
  • Germany… Dropped by 3 spots from 3rd to 6th overall. All four factor groups worsened for the month, with the biggest negative move coming from their risk rank. The Euro has become more expensive and their CDS has worsened relative to their 3 month average.