Gavekal Capital: Bond Yields, Crude, Copper all Fall to New Lows as Dow Plunges and Gold is Bid

Tuesday, January 27, 2015

Bond Yields, Crude, Copper all Fall to New Lows as Dow Plunges and Gold is Bid

The trend is your friend, so they say...as long as you are on the right side of it. That saying is particularly relevant to the trend in bond yields (30-year down 7bps) as today we get new all-time lows in the US long bond despite the large net short positioning of speculators. In the commodities space both crude (down 1%) and copper (down 2.3%) are taking a beating and making new cycle lows while the Dow Jones Industrial Average is currently down over 2%. Gold, however, remains bid (up 1.5%).

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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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