“Once in a Decade” Opportunity in Stocks, Says Marko Kolanovic of JPMorgan Chase

Beneath the calm surface of stocks lie two groups that if played right pose an almost unprecedented opportunity for when the market turns.

Not now, says Marko Kolanovic, JPMorgan Chase & Co.’s quant guru, and probably not until the summer’s over. But when the peace lifts, traders with the wherewithal should put down bets in a convergence trade that is tuned to the relative performance of two otherwise sleepy corners of the market.

One is value stocks, defined as those trading cheap to fundamentals. The other is low-volatility shares, a popular category defined as those trading with muted price swings.

Value companies, which have trailed their growth counterparts and the broader market seemingly forever, now fetch 14.4 times projected earnings. That’s a 33% discount to the other group, which is sometimes called “low beta,” data compiled by Bloomberg show. The gap is near the widest ever, Bloomberg data show.

Read the full article at Bloomberg.

3 Comments

  • I am a broke 70 yr old widow.Just found out my life Ins. stops at 70…I have 2 sons,their father,the love of my life got killed on the job working for Southern Railroad at 29…he needed 5 months to be vested.A part of me died that day oct 31,1978..I went on to school and was a nurse…one son great,the other is in prison now and has been most of his life. He has broke me physically,and emotionally…I have no money and am desperately trying to find something I can invest in that can help me…I had 20 herniated disc and 7 sx. Every time one would herniate I would have scoliosis to the point my back collapsed…I live with a lot of pain and since I am by myself if I could make enough I could move to a country /Panama/etc. that is cheaper with a good doctor report… all of this may not come to pass…I had a mild stroke last yr and on meds for depression, but will keep praying.

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