Gavekal Capital: S&P 500 Posts 1st 1% Down Day Since Apr 10th as Bonds, Gold Rally

Thursday, July 17, 2014

S&P 500 Posts 1st 1% Down Day Since Apr 10th as Bonds, Gold Rally

Ending a 66-day streak of consecutive days without a 1% down finish, the S&P500 finally succumbed to statistics as it lost about 1.2% today. Bonds and gold, on the other hand, rallied as the US 10-year treasury yield lost 7bps, the 30-year lost 6bps, and gold gained 1.5%. The VIX gained 35% to finish at 14.88 and lumber appears to have stated another leg down as it lost 2.3% on the day following weak housing related data.

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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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