A Record Number Of Negative Beta Stocks
According to the graph on the left, Evercore counts 140 S&P 500 members with a negative beta, the highest on record. On the right side, that measure for the Russell 3000 stands at 373 stocks, more than 10x its long-term average of 36. That is 6.5 standard deviations from the mean and, statistically speaking, an event that should happen once every 99 million years! Negative beta means a stock has moved opposite to the index over a defined trailing period. With the S&P 500 and Nasdaq trending upward and at or near record highs, the beta statistics imply many companies have been trending…
The skinny
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