Gavekal Capital: Industrial And Materials Making The Most New Highs Since Last Summer

Thursday, February 19, 2015

Industrial And Materials Making The Most New Highs Since Last Summer

We have had a bit of cyclical bounce over the past month in the developed stock markets. Late cyclical sectors (energy, materials, industrials) are three of the top four performing sectors and the other top performing sector is an early cyclical sector (consumer discretionary).

The percent of issues making new 52-week highs has broken out somewhat in the industrial and material sectors. In both of these sectors, we see the greatest percentage of companies making new one-year highs since last July. 17% of industrial stocks are at its one-year high and 23% of material stocks are its one-year high. Overall, 18% of all MSCI World Index stocks are trading at its one-year high, the most since last December.

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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