Brace for Flight to Quality Stocks as Volatility Jumps, UBS Says
- Quant research suggests quality as factor to outperform
- Rising cost of capital to punish companies with low margins
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It’s time for investors to raise the quality bar for stocks to invest in, according to UBS Group AG.
Strategies that favor quality factors -- including measures such as high gross margins, elevated cash flow-to-asset ratios and low accruals -- should outperform in the year ahead, said Paul Winter, head of quantitative research for Asia-Pacific at UBS in Sydney.