Gavekal Capital: The Disconnect Between Stocks and Lumber Prices Continues

Tuesday, June 3, 2014

The Disconnect Between Stocks and Lumber Prices Continues

We've touched on this point here and here, so we'll keep it brief. Lumber is making a new low today and continues to diverge from stocks. Lumber made a large divergence from stocks in 2011 and 2013. The 2011 instance led to stocks catching down to lumber, while the 2013 instance led to lumber catching up to stocks after only a very brief corrective phase in stocks.

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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