Markets in a Minute - Déjà Vu: Low-Quality Stocks Are Rallying Again, but Time Isn’t on Their Side

Does quality still matter when it comes to stock picking? After a remarkable run for certain low-quality stocks, i.e. those without reliable corporate earnings or strong balance sheets, investors could be forgiven for wondering whether it still pays to focus on the fundamentals.  

In this week’s Markets in Minute, we explore what’s driving the tremendous performance of these low-quality companies and why the answer to the question above is (as always) a resounding “yes.” Below, our friends and partners at L2 Asset Management focus on small-capitalization stocks — where the outperformance of low-quality stocks has been particularly stark.