Global Equity Internals: We Haven’t Seen These Readings Since 2011 by Steven Vannelli, CFA, Gavekal Capital Blog
- The majority of our technical indicators are exhibiting readings not seen since the fall of 2011.
- Currently only 10% of developed market stocks and 9% of emerging markets stocks are above the 50-day moving average. Performance is still tilted in favor of developed companies over emerging. In the developed world 51% of stocks are outperforming the MSCI World Index while only 29% of emerging markets stocks are outperforming.
- Over the last 50 days in the developed world 5 stocks fell for every stock that rose. In the emerging markets, the ratio is 10:1, where 10 stocks fell for every 1 that rose. The selling has been indiscriminate.
- Stocks, both developed and emerging, have been in a statistical slump with less than 50% of the last 50 trading days having been up days. Specifically, in the developed world 44% of trading days have been up days while only 42% of trading days have been up days in the emerging markets
- In the developed world 75% of stocks are down more than 10% from 3-month highs, while in the emerging markets 89% of stocks are in down more than 10% from 3-month highs.
Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More
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