Gavekal Capital: Bounce In European Early Cyclicals

Thursday, October 23, 2014

Bounce In European Early Cyclicals

The last week has been quite a volatile period, with stocks dipping and then bouncing off the lows in a V-shaped type of bottom. European consumer discretionary (early cyclical) stocks have been among the groups that have bounced the strongest off one week lows. In the table below, we can see that among the sectors in the MSCI Europe Index, consumer discretionary has led the way.

Performance of MSCI Europe Sectors

While a net 87% of European companies have experienced positive performance over the last week, consumer discretionary stocks top the strength with 97% experiencing positive performance.

Percent of MSCI Europe With Positive Performance

At the same time, consumer discretionary stocks in Europe have experienced a good statistical run, with 74% of the last five trading days up. Here we calculate the percent of up days for every company and then calculate the average.

Percent of Up Days For MSCI Europe

Listed below are the top performing European consumer discretionary stocks for anyone so inclined to continue to play the bounce.

Performance of Top 20 European Consumer Discretionary Companies

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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