Gavekal Capital: USD The Dominate Factor Over The Past Year

Monday, November 10, 2014

USD The Dominate Factor Over The Past Year

According to our Gavekal Factor Scoring Model, the US dollar has been the most highly correlated factor (out of 30) with the MSCI World Index over the past year (which is why we have been focusing so much of our attention on it over the past few months). It has had a 0.98 correlation with the MSCI World Index. On the other end of the spectrum, free cash flow yield has been completely uncorrelated to the market over the past year. Over the past week, one-month change in EPS estimates had the highest correlation, and by a fairly large amount, to the market at 0.77.

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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