MaxKapital The Hunt for Hidden Value :~)
This blog may (or may not) be of interest to investors in equity Markets. Whether it is or is not, know that this site is mainly for me. Stuff on it may be wrong, and you should not rely on it, or even take it seriously.
Tuesday, March 11, 2014
Seeking Alpha, Beta And The Economic Cycle
The market has run up. And as can be expected some high beta names have performed quite well while low beta names have underperformed.
Several of the high beta names are priced to deliver negative alpha. The negative alpha will offset beta driven gains going ahead.
On the other hand, several low beta names are priced to deliver alpha. The lower than market returns associated with low beta will be offset by high alpha going ahead.
This review which seeks out sector alpha is limited to the Dow simply to reduce the size of the universe of stocks.