Another reality that continues to manifest in US Equity Style Factor terms is what’s called the Pain Trade:
- HIGH SHORT INTEREST stocks led gainers, closing up +2.9% last week
- HIGH BETA stocks were right behind consensus shorts at +2.6% last week
- SMALLER CAP stocks played catchup too, closing +2.7% last week
*Mean performance of Top Quartile vs. Bottom Quartile, SP500 companies
This Macro Monday will indeed prove painful for anyone who shorted Friday’s Trump v. Flynn lows.