Country Allocation Portfolio

Recommended Strategy: Volatility Strategy

Country Allocation Portfolio

As of November 12th 2018

Portfolio Commentary

As 2018 comes to an end, the global economy and financial markets were jolted by a resurgence in market volatility, as well as in geopolitical uncertainty, in the form of trade tariffs and Emerging Market economic pressures.

Consequently, the number of countries and financial markets that have generated year-to-date positive returns continues to dwindle, as the global economy begins to slow.

Despite this fact, there is still opportunity to be found upon the global macroeconomic landscape. From our research, through our Bullish Quantitative Macroeconomic Asset Allocation Model, we have narrowed down the top two countries for global macro investors to invest in: United States and Israel.

United States - 33.14% Allocation


Israel - 34.55% Allocation


Floating Rate Bonds - 32.14% Allocation

Lastly, we would recommend approximately 32.14% of this portfolio to be allocated towards floating rate bonds. As the Federal Reserve continues to hike interest rates and tighten monetary policy, the global economy is faced with a rising interest rate regime. Consequently, as a way to reduce portfolio volatility and generate additional income, allocating a percentage of one’s portfolio floating rate bonds - bonds whose coupon rate’s increase as interest rates increase, investors can rest easy.

This portfolio allocation is based on our volatility strategy, where capital is allocated across top assets based on their volatility ranking. For further portfolio statistics, and to see how this allocation compares to other portfolio allocation methods, please click here.