, 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.
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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!
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