Here’s a nice list from the Ishares blog on their “riskiest countries”. It can be helpful for gauging country specific risk from a macro perspective. Not surprisingly, the list is loaded with European countries. Interestingly, you don’t find Japan or the USA on the list despite persist fears about them becoming the next Greece. The authors explain their methodology at the site:
“David Wang, a researcher on my Investment Strategy Group team, recently performed an analysis that can help investors determine where in the world risk is today. Using a combination of countries’ macroeconomic characteristics and one-year market index volatility, David developed a ranking of countries’ riskiness.
Here’s his list of the top 15 riskiest countries today, i.e. the countries whose valuations are most sensitive to “risk-on” and “risk-off” sentiment shifts:
12.) South Korea
Source: Ishares blog
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.