Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Low-Volatility Stocks Are The Market’s Superman. Can They Defy Kryptonite Forever?

FYI: The market has a Clark Kent these days, it’s low-volatility stocks: Beneath their dull facade lies a superhero defying mortal pressures.

Leuthold’s director of research and equities, Scott Opsal, made that comparison in a post on Friday. He argued that while low-volatility stocks are richly valued, they’re benefiting from strong investor momentum, falling interest rates, and investors’ ongoing demand for safety.


  • Anecdote: I have scant equity exposure overall, but a significant portion of what I do have, is "min-vol", in my case VMNVX.

    I do think min-vol is a wonderful "factor", but the problem with any factor, is that when it becomes too popular, its efficacy diminishes and quote-risk increases disproportionately.

    I suspect that when the next Bear hits, min-vol will not be spared. To paraphrase a statement I recall hearing during the GFC : "In a Bear Market, the only thing that goes up is correlation..."
Sign In or Register to comment.