High beta stocks tend to have bigger gains during bull markets and bigger losses during bear markets.
Not exact matches
How can investors best exploit research showing that low -
beta (
high -
beta)
stocks tend to outperform (underperform)?
A bear market
tends to favor lower volatility
stocks while a bull market favors
higher beta / growth
stocks.
A bear market
tends to favor lower volatility
stocks while a bull market favors
higher beta / growth
stocks.
The low
beta, or relative risk and performance to the market, will show that these
stocks tend to either perform better - or at least not as poorly - as cyclical
stocks in bad times and will usually not be most investors» focal points during the boom part of the business cycle when investors are busy chasing technology
stocks and
high - growth companies.