Gavekal Capital: Leaders Of European Performance... Are Utilities

Tuesday, February 25, 2014

Leaders Of European Performance... Are Utilities

Over the last 20 days, as stock markets around the world have recovered from their January sell-offs, an interesting thing has happened.  Defensive stocks are leading the rebound.  As an example, in the MSCI World Europe index, the utility sector is the best performer, up 7.57% on average.

MSCI Europe Sector Performance
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The move has been a pretty powerful one too, as measured by the following stats:
1) Over 100% of the 21 European utilities are above their 20 day moving average

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2) 71% are making new 20 day highs

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3) 100% of the companies have realized positive performance over the last 20 days

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4) 65% of all trading days have been up days for the sector

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