Gavekal Capital: Spanish Banks Start the New Year on a Positive Note

Thursday, January 9, 2014

Spanish Banks Start the New Year on a Positive Note

Government bond yields in Europe have declined rather rapidly in the new year-- and Spain is no exception:

Earlier today, the country followed in the footsteps of Ireland as its first auction of 2014 produced better than expected results.
Perhaps, then, it is no surprise that the leading sector in MSCI Europe in the first week of the new year has been Financials:

And, among the group financial companies, the top five performers include three Spanish banks, all of which have posted double-digit returns:

Can the recent surge in performance continue?

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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