Michael Kantro: Advises clients to avoid higher-beta stocks in current environment

Michael Kantro: Advises clients to avoid higher-beta stocks in current environment
Kantro advises avoiding higher-beta stocks

Michael Kantro said that he has been advising clients to avoid higher-beta stocks for the past few months.

He stated that the best returns in such stocks, as well as in those considered lower-quality and in the market overall, typically occur during rebounds in cyclical macro data, earnings growth, and earnings breadth.

Kantro recently reported that the S&P 500 Macro Select index has climbed nearly 30% year to date. In a separate update, he noted that corporate margins are continuing to rise due to cyclical and secular forces. These observations build on his ongoing market commentary.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.