Market Volatility Dampens Academic Factor Strategies, Investors Look To Liquid Alternatives For 2024
Dec 12, 2023
Increased market volatility, prompted by tightened credit conditions and growing geopolitical tension, has meant some academic-backed strategies, such as traditional Fama French factors, have not delivered performance this year. Academic strategies work best when the company fundamentals drive equity market returns instead of macroeconomic variables, such as inflation and central bank rates.
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