Spain, Germany, Japan, HK Top ‘Most Attractive Markets’ List

Citi’s Global Quantitative Research team highlighted equities ranked by country attractiveness in their research note ‘Tactical Market Allocation – February 2014.’

The selection model covers countries for which ETFs are available and uses inputs such as fundamental and macro-economic indicators.

Overview global equities

Global equities across both emerging and developing markets were impacted adversely by the turmoil that engulfed currencies of certain emerging countries.

Investors moved about $10B out of US equity funds though fund flows to Europe and Japan were positive.

Long-term model performance

The model envisages a long position in the top 5 most attractive countries and a short position in the bottom 5 positions. The portfolio is held for a month with returns measured in USD.

The performance of the model is...