BOSTON, MA – 11/08/2021 – Vitaly Veksler, CEO and Portfolio Manager at Beyond Borders Investment Strategies, LLC (BBIS), shared his thoughts on the performance of several from the 50 country stock market indices in BBIS’ research universe as of the end of the first week of November. To read the report in PDF format, please Click Here
Chile’s Pro-Business Presidential Candidate Surges in Polls: The MSCI Chile became the best performing index during the first week of November. I believe that the surge of José Antonio Kast, a right-wing business-friendly presidential candidate, drove the index’s performance during the week. The first round of the presidential elections is scheduled for November 21, 2021. The Pulso Ciudadano study, released on October 31 by Activa Research consulting firm, showed that José Antonio Kast gained 26.5% of the vote, pulling slightly ahead of the center-left former student leader Gabriel Boric, at 25%. [1] By the end of the week, José Antonio Kast’s polling advantage further increased. The Pulso Ciudadano poll, released on November 6, demonstrated that Kast had the support of 27.3% of the polls’ participants versus 23.7% for Boric. [2] José Antonio Kast’s polling numbers show a significant improvement in his appeal to voters. In August and September of this year, he was supported by less than 10% of various polls’ participants. [3]
The October Stage Winner Continues to Perform Well: The MSCI Egypt index continues to perform well since the country’s state of emergency was lifted on October 25, 2021, after four years it was in place. The index posted total returns of 4.1% during the first week of November. I wrote about lifting a state of emergency in Egypt in the report titled “The End of A State of Emergency Propels Egypt’s Index to Victory in October.” [4] Below is a link to the report:
http://bbistrategies.com/our-publications--events/the-end-of-a-state-of-emergency-propels-egypts-index-to-victory-in-october
Change of the Leader on the Year-to-Date Basis: Strong performance of the MSCI United Arab Emirates (UAE) index during the first week of November was sufficient for the index to wrestle the leadership from the MSCI Saudi Arabia. The MSCI Argentina and the MSCI Austria indices also had a strong week. The oil price is the primary driver of the long-term performance of the MSCI UAE and Saudi Arabia indices. It is also important for the MSCI Austria, where the weight of the Energy sector is 24.29% of the total index’s weight as of the end of October.[5] The performance of the MSCI Argentina index is mainly driven by the performance of Globant stock. It represents more than 88% of the index’s weight as of the end of October. [6]
As of November 5, the MSCI UAE index in the first place leads the MSCI Austria index in the fourth place by just 0.9% on the year-to-date basis.
Please let me know if you have any questions about BBIS, its investment strategies or would like to invest some of your funds with the firm. Thank you.
Best regards,
Vitaly Veksler, CFA
CEO & Portfolio Manager
Beyond Borders Investment Strategies, LLC
vveksler@bbistrategies.com
Footnotes
[1] Natalia A. Ramos Miranda, Reuters, “Chile Right-Wing Kast Gains Edge in Polls as Presidential Vote Nears,” November 1, 2021.
[2] Natalia A. Ramos Miranda, Reuters, “Chile right-Wing Kast Gains Edge in Polls as Presidential Vote Nears,” November 6, 2021.
[3] Wikipedia, “Opinion Polling for the 2021 Chilean Presidential Election,” After Official Registration Tables. Downloaded on November 7, 2021.
[4] Vitaly Veksler, Beyond Borders Investment Strategies, “The End of a State of Emergency Propels Egypt’s Index to Victory in October,” November 3, 2021.
[5] MSCI Austria Index, Factsheet, October 29, 2021.
[6] MSCI Argentina Index, Factsheet, October 29, 2021.
Chile’s Pro-Business Presidential Candidate Surges in Polls: The MSCI Chile became the best performing index during the first week of November. I believe that the surge of José Antonio Kast, a right-wing business-friendly presidential candidate, drove the index’s performance during the week. The first round of the presidential elections is scheduled for November 21, 2021. The Pulso Ciudadano study, released on October 31 by Activa Research consulting firm, showed that José Antonio Kast gained 26.5% of the vote, pulling slightly ahead of the center-left former student leader Gabriel Boric, at 25%. [1] By the end of the week, José Antonio Kast’s polling advantage further increased. The Pulso Ciudadano poll, released on November 6, demonstrated that Kast had the support of 27.3% of the polls’ participants versus 23.7% for Boric. [2] José Antonio Kast’s polling numbers show a significant improvement in his appeal to voters. In August and September of this year, he was supported by less than 10% of various polls’ participants. [3]
The October Stage Winner Continues to Perform Well: The MSCI Egypt index continues to perform well since the country’s state of emergency was lifted on October 25, 2021, after four years it was in place. The index posted total returns of 4.1% during the first week of November. I wrote about lifting a state of emergency in Egypt in the report titled “The End of A State of Emergency Propels Egypt’s Index to Victory in October.” [4] Below is a link to the report:
http://bbistrategies.com/our-publications--events/the-end-of-a-state-of-emergency-propels-egypts-index-to-victory-in-october
Change of the Leader on the Year-to-Date Basis: Strong performance of the MSCI United Arab Emirates (UAE) index during the first week of November was sufficient for the index to wrestle the leadership from the MSCI Saudi Arabia. The MSCI Argentina and the MSCI Austria indices also had a strong week. The oil price is the primary driver of the long-term performance of the MSCI UAE and Saudi Arabia indices. It is also important for the MSCI Austria, where the weight of the Energy sector is 24.29% of the total index’s weight as of the end of October.[5] The performance of the MSCI Argentina index is mainly driven by the performance of Globant stock. It represents more than 88% of the index’s weight as of the end of October. [6]
As of November 5, the MSCI UAE index in the first place leads the MSCI Austria index in the fourth place by just 0.9% on the year-to-date basis.
Please let me know if you have any questions about BBIS, its investment strategies or would like to invest some of your funds with the firm. Thank you.
Best regards,
Vitaly Veksler, CFA
CEO & Portfolio Manager
Beyond Borders Investment Strategies, LLC
vveksler@bbistrategies.com
Footnotes
[1] Natalia A. Ramos Miranda, Reuters, “Chile Right-Wing Kast Gains Edge in Polls as Presidential Vote Nears,” November 1, 2021.
[2] Natalia A. Ramos Miranda, Reuters, “Chile right-Wing Kast Gains Edge in Polls as Presidential Vote Nears,” November 6, 2021.
[3] Wikipedia, “Opinion Polling for the 2021 Chilean Presidential Election,” After Official Registration Tables. Downloaded on November 7, 2021.
[4] Vitaly Veksler, Beyond Borders Investment Strategies, “The End of a State of Emergency Propels Egypt’s Index to Victory in October,” November 3, 2021.
[5] MSCI Austria Index, Factsheet, October 29, 2021.
[6] MSCI Argentina Index, Factsheet, October 29, 2021.
PERFORMANCE TABLES
Sources: Refinitiv, Beyond Borders Investment Strategies (BBIS). Used MSCI country index performance for 48 countries - all but the US. The US performance is represented by MSCI USA and S&P 500 indices. All performance series measure total returns of US Dollar-denominated indices.
Disclaimer: Opinions expressed in this report are of BBIS and are for information purposes only. This report does not represent investment advice. BBIS holds investment positions in single-country equity ETFs of some or all countries mentioned in the report. Past performance is no guarantee of future results.
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