Quality held the largest sway over global equity markets relative to other market factors in 2019, despite the fourth quarter risk rally, according to new research from global index provider FTSE Russell. In its recently published Market Maps Regional Factor Indicator Report, our strategists describe a global market in which investors rewarded stocks with high quality, high profitability and low leverage. Notably, the UK was the only major market in which Quality did not outperform, but it did outperform all other markets in positive impact of Size.
Source: FTSE Russell and Refinitiv. All data as of December 31, 2019. Results shown for regional Factor Indicators represent hypothetical, historical performance, at Tilt 1, based on FTSE Global Equity Index Series and the FTSE Global Factor Index Series. Past performance is no guarantee of future results.
Philip Lawlor, managing director, head of global market research, FTSE Russell:
“While risk appetite has markedly improved in recent months, investors generally remained guarded, favoring the stocks of companies with relatively reliable profitability and stronger balance sheets. These preferences helped solidify Quality (and Profitability) factor leadership across most markets (except in the UK) for the year, while the Q4 rallies in Value and Size faltered by year end.”
You can see additional insights from Philip Lawler and the FTSE Russell global markets research team in their latest FTSE Market Maps monthly performance report.
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