High-Beta Stocks Vs. The Broader Market
Blaine Rollins | Nov 07, 2019 03:07PM ET
This chart illustrates how in periods when high-beta stocks struggled, the broader market tended to struggle as well, but to a lesser degree.
Therefore, investors may potentially benefit by implementing strategies that short high-beta stocks to better protect against capital loss during market downturns. This approach may improve an investor's overall experience – keeping them invested across market cycles so that portfolio assets can continue to work and the power of compounding can be fully realized over the long term.
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