Investor sentiment in 2021 can be summed-up in one word: “concerned”. Generally speaking, investors know there are only a handful of events that can spark a turning point in a market cycle — and in 2021 most expected tapering to be one of them.
While FAANGs have long basked in the investment spotlight, the digital transformation accelerated by the coronavirus crisis has dramatically amplified the market influence of these tech giants in the US.
Apple. Amazon. Microsoft. Alphabet. It’s no secret that tech stocks are driving markets higher and have been important contributors to portfolio returns. But what about their impact on value-based strategies?
In our latest paper “Minimum Variance: A Leg Up on Geopolitical Risk?”, we examined the impact of recent market risk events on a range of STOXX® minimum-variance indices vis-à-vis their corresponding global and regional broad benchmarks.
The belief that markets react to news in a causal fashion is not only the way we think about investing, it’s also one of the things that captivates us about it, i.e., the notion that we can succeed as investors through careful research and logical thought.