The Growing Divergence

Over the last month, there’s been a growing divergence in the stock market. The more volatile stocks of the High Beta sector have done poorly whereas the conservative stocks of the Low Vol group have barely budged. In fact, they’re up some.

Check out this chart of High Beta (in blue) versus Low Vol (in red) over the last month.

Typically, this represents a market that’s become nervous. When in doubt, investors flock toward safety. At least, perceived safety.

Posted by on May 21st, 2019 at 7:56 am


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