Barc: Low Vol Stocks Are Likely To Fall Another 15%

Low Vol is rapidly becoming the worst performing style of 2016. Since the beginning of September Low Vol and “bond proxy” stocks have underperformed as investors have rotated away from these styles into Value.

Barclays was the first to predict this trend earlier in the year and a research note published earlier this week, the bank’s equity analysts revisit the Low Vol rotation theme, predicting more pain ahead for the style.

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The focal point of the research note is that while these stocks have already underperformed Value stocks by 14% since July if current trends continue Low Vol could...