Gavekal Capital: Beware the Ides of March?

Tuesday, March 10, 2015

Beware the Ides of March?

MSCI World equities are off to a rough start for the month, with 8 out of 10 sectors in negative territory so far:

The percentage of stocks above their respective moving averages has fallen:

And the number of stocks making new lows has jumped to 33% from 0% for longer time horizons:

Whether this pullback develops into something worthy of the drama with which the Ides of March are historically associated remains to be seen. It could turn out to be as innocuous as the actual meaning of 'Ides', which was simply a Roman designation for the 15th day of the month in March, May, July, and October.

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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