Gavekal Capital: German Health Care Stocks: Market Leaders?

Tuesday, October 29, 2013

German Health Care Stocks: Market Leaders?

As we mentioned a couple of weeks ago, most European equity indices are in positive territory this year (lead by the peripherals). And, as the DAX continues to make new highs, we decided to take a quick look at what might be driving performance in MSCI Germany...

The Heath Care sector (followed closely by Consumer Staples) has been a significant source of strength in recent history:

However, if we look more closely, the reality is that this sector has been largely supported by just one stock:

Which helps explain why, when we look at the rest of our relative strength point-and-figure charts in the German Health Care sector, most fail to confirm any overwhelming leadership:

The information listed above is for example purposes only and should not be construed as the Investment Advisor’s opinion or investment outlook.

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The information presented here is for informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. An investor cannot invest directly in an index. Hyperlinks may be included in this message that provide direct access to other internet resources, including web sites. While we believe these links are to reliable sources, Gavekal has no control over the accuracy or content of information contained on these sites. Although we make every effort to ensure such links are accurate, up to date and relevant, we have no control over pages maintained by external providers. The views expressed by these external providers on their own web pages or on external sites they link to are not necessarily those of Gavekal.
The information listed on this blog is for example purposes only and should not be construed as the investment Advisor's opinion or investment outlook. As of the most recent quarter end, the named companies may have been held by the investment Advisor. Please review the most recent disclosures. For full information including additional policies and full disclosures on the Advisor, please visit our website gavekalcapital.com.