
A scorecard for global equity allocation
Macro-quantamental scorecards are systematic enhancements of discretionary portfolio management. They offer (a) information efficiency by structuring and condensing key macroeconomic data series, and (b) empirical validation of predictive power and trading value using historic point-in-time information. Scorecards can be readily built in Python, with pandas and existing classes and methods.
Macro-quantamental scores support capital allocation across country equity markets, which is critical for long-term wealth generation by professional investment managers and private investors alike. This post demonstrates how to construct a simple tactical scorecard based on real equity carry, real exchange rate valuation, terms-of-trade dynamics, external balance strength, international investment position changes, and economic confidence trends. There is strong evidence that such a systematic approach delivers predictive power and sustained value generation.