Gavekal Capital: 9 Out Of 10 Energy Stocks In The Developed World Are In A Bear Market

Tuesday, December 16, 2014

9 Out Of 10 Energy Stocks In The Developed World Are In A Bear Market

The MSCI World Index is only about 6% of it's 200-day high as of the close yesterday. However, 55% of the stocks in the index are down at least 10% and 30% of the stocks in the index are currently in a bear market (down at least 20%).

By region, Europe unsurprisingly has the most stocks in a bear market with just under half (46%) of the stocks in the MSCI Europe Index down over 20%. 30% of the stocks in MSCI Pacific and 21% of the stocks in the MSCI North America Index are in a bear market.

By region, once again unsurprisingly, the energy sector has the highest percentage of stocks in a bear market. Over 91% of all energy stocks in the developed world are in a bear market. The last time this many energy stocks were down at least 20% was on October 4th, 2011. Materials has the second largest percent of stocks down at least 20% at 50%. Health care has the fewest at 14%. The remaining sectors all have between 20%-34% of its stocks in a bear market. Charts of the sectors below.

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