Gavekal Capital: And The Best Performing Sector Year-To-Date Is...

Monday, August 4, 2014

And The Best Performing Sector Year-To-Date Is...

Emerging Markets Telecom! Probably not what one would have guessed, right?

The Emerging Markets Telecom sector has outperformed the 2nd best sector by over 6% so far this year. Overall, the Emerging Markets have easily outpaced the Developed Markets year-to-date. In fact, the average stock in the Emerging Markets has outperformed the best performing sector in the Developed Markets by 19 basis points.

So far in the third quarter, the Emerging Markets are are still in positive territory (+1.29%), while July and the first trading day of August were rough for Developed Markets (-2.30% QTD).  The Developed Markets Energy sector has taken a particularly rough beating in the 3rd quarter. After being the high flyer of the first half of the year and especially in the 2nd quarter, the Developed Markets Energy sector is down over 6% so far in the 3rd quarter. Also, the Emerging Markets Energy sector is actually the worst performing sector in the MSCI All-Country World Index. Finally, the Developed Markets Consumer Discretionary sector continues to pull up the rear in the Developed World.

Emerging Markets

Developed Markets