Gavekal Capital: Shipping Rates & The Taper

Wednesday, January 15, 2014

Shipping Rates & The Taper

There are a multitude of indicators that have moved in mostly lock step with the FRB's asset purchases over the last four years. One is shipping rates. Here we compare the 3-month change in FRB total assets to the Baltic Dry Index lagged by two quarters. The almost 30% drop in the Baltic shipping index so far this year is a negative omen for other indicators that also highly correlated to FRB asset purchases.

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.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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