The Top 15 Riskiest Countries

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:

1.)    Hungary

2.)    Italy

3.)    Austria

4.)    Sweden

5.)    Poland

6.)    Finland

7.)    Spain

8.)    Germany

9.)    France

10.) Russia

11.) Norway

12.) South Korea

13.) Turkey

14.) Netherlands

15.) Brazil”

Source: Ishares blog

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

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