- Since the start of earnings season, stocks have been range-bound and volatility has risen, up around 40% from the early April low.
- Cyclical sectors have been leading since the fall, while tech has been a funding source, as investors reposition for the fastest growth in decades.
- Investors are also demonstrating a preference for earnings consistency in cyclical industries ranging from tech hardware to banks.
- Quality and low volatility are performing their function: providing upside while helping to manage overall portfolio volatility.
For further details see:
Equities To Hedge Equity Risk