, JPMorgan's global head of macro, quantitative, and derivatives strategy, who expected that the shift to value would persist into Q1 2020.
He had identified a gulf between value's lag on one hand, and the outperformance of factors including momentum — which lifted many fast-growing technology stocks — and low volatility. Kolanovic even called the expected convergence between these factors a "But the gap has only gotten wider since last July and is now twice as large as it was during the dot-com boom. Value is still out of favor, while low-volatility and momentum-driven technology stocks are all the rage.
"We caution investors that this bubble will likely collapse, i.e. this time is not 'different', with valuations reverting closer to 2010-2020 average," Kolanovic said in a recent note to clients. Kolanovic went further than declaring an "equity factor bubble" to explain what is behind its expansion.
Nice paywall. I won’t subscribe to anything now that anonymous micro payments are possible using crypto currency. Get caught up on technology BI and open the door to a whole new readership.
CLICK BAIT POST
In the time that I've been 'in the market' as an every day American investor, I have seen bubbles build & pop. Lost a few 100g's in the tech🎈& learned the hard way. Bubbles will build again! Bubbles will blow again! Lil ole can tell u, the pin is about to meet the rubber. BOOM!
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: CNBC - 🏆 12. / 72 Read more »