t Is Low Volatility the ‘Right’ Investment Style for European Equities?
Also Interesting
Overview
- The long-term outperformance of low volatility stocks, known as the ‘low risk anomaly’, is supported by a range of academic literature.1 • In Europe, low volatility has performed particularly well, as illustrated over various time horizons.
- Now may be an opportune time to consider a low volatility approach. Equity market seasonality suggests that October and November often witness heightened volatility. We also often see higher volatility late in the economic cycle.