Future Finance
Quant Warnings Get Louder Over Beloved Defensive Stock Trade
- Low-volatility stocks were already richly valued before rout
- Bernstein, Nomura, JPMorgan among names preaching caution
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As panicky investors dive for cover from the threat of the coronavirus, quantitative strategists are stepping up warnings over one of the more popular places to hide.
A strategy of buying low-volatility stocks already looked richly valued in the lead up to recent turmoil, they argue, and having taken in yet more cash recently the bubble risk has only increased.