Gavekal Capital: VDAX Set to Rise?

Wednesday, January 21, 2015

VDAX Set to Rise?

In recent history, each time the EUR has fallen relative to the dollar, the implied volatility of the German DAX has risen-- sometimes rather sharply. With the euro's significant decline, it is not much of a stretch to conclude that things could get more interesting (perhaps in light of certain important announcements from the ECB tomorrow?):

(five-year time horizon)

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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