Country Rotation – December 2010
December 4, 2010 Leave a comment
This is an update to the country rotation strategy I outlined a while ago. It ranks stock markets of developed markets and a few major emerging markets by valuation and momentum.
Methodology: First, the countries are sorted by each of the metrics individually, assigning a score of 1 to the top country, 2 to the 2nd from the top, 3 to the third from the top, and so on. The scores of the underlying metrics are then added up, and re-sorted.
There’s been one change since last month. On November 10, Global X launched the Global X FTSE Norway ETF (NORW), making it easy to gain access to the Norwegian stock market. Because of this, I’ve added Norway to the country rotation strategy.