Remember this key statistic as the stock market continues its wild ride this year: approximately 90 percent of all trading is systematic. In other words, “The Machine” on Wall Street actively chases style factors.
Right now, a safer place to be is in “low beta” as Hedgeye CEO Keith McCullough explains in the clip above. What are two big name stocks that are outperforming the market because they fit in that bucket?
McDonald’s (MCD) and Starbucks (SBUX).
“High beta and small cap are two of the worst places you could have been in last week,” McCullough explains in the clip above. “McDonald’s and Starbucks are not either of those things. They have lower betas and they’re acting more like consumer staples.”
Watch the full clip above for more.