Recently, I've seen significant underperformance from "quality" stocks in non-U.S. developed markets. This is not surprising. New entrants who come into markets after a rally are nearly always afraid they have "missed it," so rather than focusing on future long-term gains, they often respond by trying to find "bargains" that can yield a short-term payoff. Usually, this may involve buying companies that are highly levered into good macroeconomic news and that will pop more than will steady earner...
Recently, I've seen significant underperformance from "quality" stocks in non-U.S. developed markets. This is not surprising. New entrants who come into markets after a rally are nearly always afraid they have "missed it," so rather than focusing on future long-term gains, they often respond by trying to find "bargains" that can yield a short-term payoff. Usually, this may involve buying companies that are highly levered into good macroeconomic news and that will pop more than will steady earner...
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