The 2016 Market Regime – Low Vol, High Quality Take Over

An interesting slide from the latest State Street Global Advisors deck – this year’s outperforming stocks low volatility names and high quality names (there is frequently a lot of overlap between the two). Last year’s winning style – momentum – has thus far turned negative.

(click to embiggen!)

Screen Shot 2016-03-28 at 3.17.47 PM

The data only runs through the end of February but March has seen a lot of the same. Michael Batnick and I were looking at both the minimum volatility ETF (SPLV) and the high quality ETF (QUAL) over the last few days and noticing these trends.

That’s the thing about mean reversion – everyone’s style is nailed to a giant wheel. At any given moment, one style is on it’s way up while another is being plunged under the river that powers the wheel. Stick around long enough and you’ll see plenty of revolutions.

 

 

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. wigs commented on Sep 18

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  2. 사설토토 commented on Oct 17

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  3. Devops commented on Nov 19

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  4. Tree Removal local commented on Dec 11

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  5. td trust login commented on Dec 13

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  6. https://www.best-paintings.com commented on Dec 30

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  7. cheap love doll commented on Dec 31

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  8. Tripp Lite Racks manuals commented on Jan 18

    … [Trackback]

    […] Here you can find 94752 additional Information to that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  9. replica watches commented on Jan 22

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]

  10. CI CD Company commented on Feb 07

    … [Trackback]

    […] Here you can find 22495 more Info on that Topic: thereformedbroker.com/2016/03/28/the-2016-market-regime-low-vol-high-quality-take-over/ […]