Gavekal Capital: Japan's Economy Watchers Survey and LEI Are Diverging

Monday, November 11, 2013

Japan's Economy Watchers Survey and LEI Are Diverging

QE is rolling on in Japan, but we're starting to see some mixed signals when it comes to the real economy, the latest of which is the divergence between the just released and widely followed Economy Watchers Survey and the Leading Economic Indicator. We are keeping an eye on Abenomics to make sure the strength in some indicators is not a transitory result of the 20% currency devaluation and 2013 fiscal stimulus - both of which if not doubled down upon will fail to be tailwinds next year.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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