Gavekal Capital: Bankruptcies in Denmark --> Decline in S&P 500?

Monday, October 6, 2014

Bankruptcies in Denmark --> Decline in S&P 500?

Data released today revealed a jump in both bankruptcies and forced property sales in Denmark:

Why do we care? Mostly because of the relationship between Danish consumer confidence and the performance of the S&P 500:

Updated figures for consumer confidence won't be released for a couple of weeks-- but a rebound seems unlikely in the face of negative news releases like those we saw today.

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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