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Defensive Quant Trades Are Headed for Best Month Since Covid Hit

From bnnbloomberg.ca

Regardless of whether the S&P 500 recovers from its miserable start to the week, systematic stock strategies are full of warnings that economic growth has already peaked. An investing style that buys profitable firms with low debt is on course for its best month since the Covid-spurred market collapse last March, a Dow Jones index shows. Ditto a low-volatility trade beloved by quants during bouts of risk aversion. Investors have also been yanking cash from smart-beta funds that buy up stocks acutely tied to the economic cycle. While the U.S. benchmark is only 2% off its record in the Tuesday rebound, the signals in ... (full story)

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  • Category: Fundamental Analysis