14 December 2009
Shift towards Quality
There has been a persistent bias towards quality stocks over the last few weeks as measured by VMO. Not much to get the attention of traders but it's there. Over time you can bet that usually better quality names will outperform. That wasn't the case last year to the lament of most longterm fundamental types. But over time (say 4 out of 5 years) quality wins. Strangely XOM was much lower quality (via VMO) than XTO. So there. Otherwise liquidity rules. Enjoy.