In this video, Steve summarizes his quarterly update on the Gavekal Knowledge Leaders Strategy. With corporate R&D investments accelerating to levels last seen during the 90s tech boom, we are in an innovation boom.
The consistent decline in Economic Policy Uncertainty*, as measured by the indexes presented here, would seem to serve as evidence supporting a continuation of the positive trend in European equities.
Not to take anything away from what has become a bona fide bull market in China, but we have been pretty skeptical that the rally in domestic Chinese shares has anything to do with corporate fundamentals. It more likely has to do with central bank stimulus.
Market-cap weighted indexes such as the MSCI global equity indexes are commonly used reference points for investment benchmarking. In these indexes, the market cap of the top 10% of the stocks is generally 50% of the market cap of the index.
There is an old belief that when bank stocks are doing well, the economy must be doing well also. With this in mind, we decided to take a look how the banking sectors have performed in seven different countries: USA, Germany, United Kingdom, France, Japan, China, Brazil.