If You Believe Quants, Nothing Happened in Markets This Month
- Quant equity factors like momentum show no impact from turmoil
- Performance signals tired bull market in late-stage economy
BlackRock's Moore Says Investors Have to Rethink Safety
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There’s a standard playbook for quantitative factors when markets go haywire. But if February is any guide, the rules are out of date.
During selloffs, momentum stocks -- roughly defined as the biggest gainers over the past year -- tend to lead the way down as shaken investors cash out on their winners. Meanwhile, defensive factors like low-volatility or dividend payers should provide a pocket of safety from the carnage.