In August, countries with the strongest fundamentals continued to outperform while buying countries with cheap valuations has been a drag on country selection. South Korea and Brazil are our two fastest rising countries, while Italy and Peru are falling.
In Mexico, legislation to implement energy reforms was recently approved. With this, the country has officially pressed the “go” button on activity that will create long-term, growth-enhancing capabilities.
Focusing purely on country selection within global equity allocation has brought investors long-term results since 1991. We explain why we believe country selection opportunities will only continue to increase and become easier.