If you’re looking for some value and aren’t afraid to invest abroad, perhaps Italian stocks are something you should consider.
According to quants at Citibank’s global equities team, it’s currently the most attractive market in which to invest, beating out South Korea, Germany and Japan for top spot in the latest rankings.
“For January, Japan and Singapore enter into the basket of top five most attractive countries driven by their appealing valuation and Japan’s improved short-term price momentum,” Citi says.
At the other end of the spectrum, stocks in Mexico, Sweden and Belgium are currently deemed to be the least attractive of the 22 nations monitored by Citi.
Citi says it comes up with these rankings using a model that uses a mix of style, fundamental and macroeconomic indicators as inputs.
“Factors and weights vary across markets,” Citi says.
“The weights assigned to these factors are determined by the size and strength of the relationship between a market’s rank on a given factor and the subsequent performance rank of the country across the region.”
And, for the moment, those inputs suggest Italian stocks are looking good.