Gavekal Capital: Number Of New 52-Week Lows Increased To A 17-Month High

Thursday, April 10, 2014

Number Of New 52-Week Lows Increased To A 17-Month High

As we are sitting here watching another potential 1% down day in the S&P 500 (we commented about this earlier in the week here and here), we thought we would take a quick look at cumulative net new highs and lows. For the MSCI World, the 1-quarter sum of new 52-week lows has increased to the highest level since October 2012 (left axis is inverted on the first chart). Meanwhile, the 1-quarter sum of new 52-week highs has steadily been falling since the beginning of the year. This has brought the net new 52-week highs (highs minus lows) into range of breaking the low set in September 2013. As 2011 shows, this can go from a very positive number to a very negative number in just a few months so it is something to keep an eye on.

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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Disclosure

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