Gavekal Capital: European Estimate Revisions and Market Performance

Monday, March 3, 2014

European Estimate Revisions and Market Performance

As we have just seen, the main driver behind European equity performance recently is the one-month change in EPS estimates:

And, as we noted last week, those estimates have the worst revisions of any of the three regions:

Will the caution on earnings momentum begin to weigh negatively on the price performance of European stocks or does this market have more room to run?

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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