Gavekal Capital: European Pharmaceuticals Continue Outperformance, Remain Tres Cher

Friday, July 25, 2014

European Pharmaceuticals Continue Outperformance, Remain Tres Cher

As discussed in yesterday's quarterly investor call (see here for a recap), the counter-cyclicals (and the growth counter-cyclicals, in particular) are currently the most attractive group in MSCI Europe.  Regular readers know that one of our favorite, knowledge-rich, heavy r&d investing groups is the Pharmaceutical sub-industry.  So how are the constituents performing relative to the MSCI World?

For the most part, uptrends are intact in our point-and-figure charts:
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A few names have suffered setbacks, however:
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Overall, valuations remain some of the highest in all of MSCI Europe:

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