Gavekal Capital: Update On Counter-Cyclical vs Cyclical End Of Year Performance

Monday, December 8, 2014

Update On Counter-Cyclical vs Cyclical End Of Year Performance

Two weeks ago we mentioned that over the past several years the last six weeks of each year has tended to either strongly favor cyclical stocks or counter-cyclical stocks. Today, we wanted to update that chart. And of course now that we are keeping an eye on it, the result we have to share with our readers is rather boring. Counter-cyclicals have managed to outperform cyclicals by a whopping 27 basis points since November 15th.

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Year-to-date, the health care sector continues to dominate on a equal-weighted basis. The health care sector is up over 20% as of last Friday's close. In second place, information technology sector is now outperforming the utilities sector to add a little cyclical balance to the leadership. As we noted in another post today, the energy sector continues to be the major laggard in the stock market.

MSCI World Performance as of close on 11/5/2014
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