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Saturday, February 20, 2016

Country Market Value Rankings

The Covered Calls Advisor has just completed an update (previous "Country Market Value Rankings" evaluation was in early December 2015) to determine the relative investing worthiness of twenty-three countries and two regions (Europe and Emerging Markets) around the world.  The "Country 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) -- China
Bullish (22-28 points) -- None
Slightly Bullish (17-22 points) -- South Korea, Singapore, Emerging Markets, Taiwan, Sweden, Netherlands, and Switzerland
Neutral (12-17 points) -- Hong Kong, Malaysia, Russia, India, Germany, Spain, Europe, Australia, and United Kingdom
Slightly Bearish (8-12 points) --Mexico, USA, and France
Bearish (2-8 points) -- Canada, Italy, and South Africa
Very Bearish (below 2 points) -- Japan and 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 19th of the 25 ratings and the overall rating for the U.S. is Slightly Bearish [Note: this is the same rating for the U.S. as was determined from this advisor's Overall Market Meter analysis (see right sidebar)].

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! 

Regards and Godspeed,