Quality Investing Works Best In Equity Markets

What works in equity markets?

Quality investing, according to Citi’s equity research team.

In a research note published this week, Citi’s equity research team looked at the outperformance of Quality stocks, compared to other strategies since the financial crisis.

Since the onset of the financial crisis, Quality investing has gained traction in the global investing community. Driven by a hunt for safe haven assets and dividend income, defensive positioning has led to significant Quality outperformance as investors have sought protection from macroeconomic uncertainty its associated effect on equity volatility.

However, while the flight to quality may have been the key driver for Quality outperformance in the short-term, Quality...