Gavekal Capital: Encouraging News from the Ifo Survey? Nope.

Tuesday, June 24, 2014

Encouraging News from the Ifo Survey? Nope.

Similar to last week's disappointing ZEW survey (see here), the German Ifo survey fell for the third time in four months in June. The expectations component continues to be the weakest:

The services sector provides a more positive view; however, the outlook for future improvement in services isn't much more optimistic:

As we have seen with the other surveys (ZEW and PMI), the relationship with GDP does not send an encouraging message for continued strengthening of the economy.

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.
Blogs are posted by our investment team. Find out more about us at here. Read more about our strategy at www.gavekalcapital.com.

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