YWR: Global Factor Model
Disclosure: These are personal views, not investment recommendations to buy or sell a security. For investment advice seek professional help.
How can we have situational awareness of the top investment trends around the world? These are trends that are steadily cooking, but aren’t big enough to make the top headlines.
We use the YWR Factor Model. It’s our tool. We review it every month to see what’s ranked well, and how the rankings are changing.
For example, let’s look at the best companies globally on earnings revisions, valuation and price momentum.
Top 20 Global
Lots of Turkey, China and Aluminum. And Shipping.
We’ve been talking about Turkey for months. And it’s working in US$ terms. The YWR model likes Garanti on 5x earnings with positive earnings revisions and a positive share price.
But who’s talking about Turkey? Nobody. Just us.
A word on Aluminum and Platinum….
The Aluminium sector has the second best estimate revision momentum globally, behind precious metals. Aluminum prices have rising since Russian sanctions in April.
But what interests me more is the PGM’s. The most sensitive metal in the world to Russian sanctions is palladium. Russia supplies 40% of global palladium through Norilsk Nickel. PGM stocks like Sibanye, Anglo Platinum, Impala, Tharisa and Sylvania are all on their lows. The auto industry has requested palladium not be sanctioned because there isn’t any alternative supply except for South Africa. A clamp down on Palladium would be explosive because the biggest users, Western auto companies, have to follow it.
Most of you don’t trade Turkey or China, so let’s see the Top 20 in the US.
BTW, you have access to the rankings for all 3,000 stocks in the database at the bottom, as well as the Tableau dashboards, so you can cut/slice/filter however you want on industries, countries and rankings.
But back to the US.