YWR Global Factor Model
Disclosure: Personal views only. Not investment recommendations.
Top 15 ranked stocks this month.
New trends:
Italian banks are really moving up the ranks. We’ve been talking about that since last year. I need to think more about whether it’s something to add more to. Actually, loads of banks in the list.
Autos we also know about. Renault is third best, but further down the list VW and BMW also score well. I also like Mercedes. We looked at the Mercedes slides this week in Killer Charts
Airlines are increasingly moving up the list. United is in the top 15, but Delta, Lufthansa and Singapore Airlines score well too. Airlines could be a new untouchable sector, Untouchable #5.
They aren’t in the top 15 but reinsurance companies are scoring well. There are big positive earnings revisions for EverestRe and RennaissanceRe. Munich Re reported good results today. Seeing these earnings revisions reminded me of a dinner last week with a friend who works in the reinsurance industry. He said the industry has been terrible the last few years, but he knows the business they have been writing recently and when the results come through earnings will be much better.
Nippon Steel and Thyssen. Is there a bigger story to steel? We looked at some Nippon Steel slides last week in Killer Charts.
Japanese trading companies also score well. Sumitomo is in the top 15, but Marubeni and Mitsui score well too. Is it just their commodity exposure or is it partly their other industrial businesses as well? I always love the valuations on these companies and they get into some interesting businesses.
A link to the complete file is attached below. I’ve added filters to take out some of the countries, such as Turkey. Turkey is scores well, but aside from the Turkey ETF it’s hard to get exposure.