Most Expensive Stocks Prove Surprising Haven in Europe Slump
- Investors stung by extreme volatility went on the defensive
- Cash still king, with global allocation highest since 2008
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In a quarter when European equities saw the most volatility in three years and the worst returns in four, investors did something that might seem strange: they bought high.
Companies with the loftiest valuations, a group that includes stable profit generators such as Roche Holding AG and L’Oreal SA, beat a basket of cheap stocks by the most on record in the period, data compiled by Morgan Stanley and Bloomberg show. It happened as a gauge of price swings jumped 34 percent above its three-year average and shares fell 11 percent through yesterday. They regained 2.5 percent on Wednesday.