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Saturday, December 5, 2015

Country Market Value Rankings

The Covered Calls Advisor has just completed an update of the methodology for determining the relative investing worthiness of twenty-three countries and two regions (Europe and Emerging Markets) around the world.  The updated "Country Market Value Rankings" table below is based on a weighted-average ranking system.  The eight indicators used to calculate these rankings are as follows:

Today's ranking, shown in the table below, provides a value-oriented and objective framework that assists this advisor in making decisions regarding overweighting and underweighting specific countries and regions in the Covered Calls Advisor's Portfolio.



From the chart above, the resulting overall market ratings for individual countries and regions are:
Very Bullish (Above 28 total points) -- None
Bullish (22-28 points) -- China
Slightly Bullish (17-22 points) -- Singapore, South Korea, Taiwan, and Emerging Markets
Neutral (12-17 points) -- Sweden, Malaysia, Switzerland, Germany, Hong Kong, Netherlands, India, Mexico, and Australia
Slightly Bearish (8-12 points) --Spain, USA, Europe, Canada, Russia, and United Kingdom
Bearish (2-8 points) -- France, South Africa, Italy, and Japan
Very Bearish (below 2 points) -- Brazil

An unweighted stocks portfolio allocation would be as follows:

However, future investments in the Covered Calls Advisor Portfolio will overweight higher rated countries/regions and underweight lower rated ones. It should also be noted that the U.S. is currently ranked 16th of the 25 ratings and the overall rating for the U.S. is Slightly Bearish.

This Country Value Rankings spreadsheet is detailed in terms of both the methodology used and the resources used to capture the information for each country. If you would like further information or clarification, please email your comments and questions (to the address in the top right sidebar of this blog). They are always welcomed.

Hopefully, this information is helpful in your thinking and analysis of your own equities selection methods related to your covered calls investing process!  Going forward, it is my intention to update this information quarterly.

Regards and Godspeed to All,