Yves Choueifaty, CEO of TOBAM, has said low volatility stocks in the US are in bubble territory as a result of strong inflows and the high concentration of the US stockmarket.
Speaking to Investment Week, Choueifaty (pictured) said: "There are bubbles within the bubble. The areas in which we see the most concentration are financials in Europe, financials and energy in emerging markets and low volatility [stocks] in the US." What does proper portfolio diversification look like? Choueifaty said as these stocks, which include defensive names, become more expensive and the concentration of the market grows, the firm's diversified smart-beta strategies underperform. TOBAM runs Anti-Benchmark smart-beta strategies, which aim to deliver maximum diversification...
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