Gavekal Capital: S&P 500 and the Yen Still Moving in Lock Step Despite Geopolitical Turmoil

Wednesday, March 5, 2014

S&P 500 and the Yen Still Moving in Lock Step Despite Geopolitical Turmoil

Even amid geopolitical turmoil S&P 500 futures (blue line) and the JPY/USD exchange rate (orange line) are still moving in virtual lock step.

But from a longer term perspective we are starting to see some cracks in the correlation. We will be monitoring closely which series catches up (or down) to the other.

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.
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