, Columnist
Dance of Investing Styles Doesn’t Signal a Downturn
The occasional alignment of factors like value and momentum is a poor predictor.
Moving in the same direction isn’t a message.
Photographer: Alexander Hassenstein/Getty Images
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The U.S. stock market notched yet another record on Wednesday, and many investors are anxiously looking for signs of a slowdown.
Perhaps not coincidentally, researchers at Sanford C. Bernstein & Co. say they’ve spotted one. According to Bloomberg News, Bernstein has found that correlations among investment styles — or factors — such as value and momentum “have shot to all-time highs.”