Gavekal Capital: A Few European Investment Ideas For Those Who Believe In Mean Reversion

Tuesday, September 16, 2014

A Few European Investment Ideas For Those Who Believe In Mean Reversion

Looking over our charts and data, there are a few areas that seem like decent ways to play a mean reversion trade.  Over the last 100 days, many large European countries have experienced large technical corrections. In charts below, we show the percent of companies trading above their 100 day moving average in the UK, Germany, France and Italy.

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Next we display the performance of the sectors within each country in an effort to show which sectors have dragged down performance the most and are, in turn, the places to look for mean reversion ideas.

Performance MSCI UK
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Performance MSCI Germany
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Performance MSCI France
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Performance MSCI Italy
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