Gavekal Capital: Spike in Distribution of European Stock Hits 2011 Levels

Monday, August 11, 2014

Spike in Distribution of European Stock Hits 2011 Levels

A while back, we noted investors' generally muted appetite for stock accumulation, as evidenced by our accumulation/distribution indicator:

On a regional basis, however, the picture looks more varied. Investment in MSCI Asia-Pacific picked up nicely until the recent correction (though it remains positive), while trading in MSCI North America equities has had a slight bias towards selling for most of the year so far:

Meanwhile, positive accumulation trends that have prevailed in MSCI Europe since the beginning of 2013 broke down in mid-July and have since accelerated towards a level of net distribution not seen since 2011:

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.
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