September 23, 2024 (NO COMMENTS)

Talking Heads: Stock dispersion sees funds gross up on long/short baskets, while US structured notes come of age

 

Equity markets have long sung to a macro tune. Lower interest rates typically favour growth stocks while value tends to perform in a higher-rate environment. Investors have historically swung between the two approaches on shifting inflation and rate expectations. This well-trodden rotation recently took a back seat to the explosion of dispersion between single names, with record low correlation unleashing a golden era of stock picking. It’s a trend Glenn Koh, global head of equity trading at Bank