EXCERPT
The phrase “flight to quality” is familiar in many contexts. In times of crises, many investors favor U.S. Treasuries, even though other kinds of fixed income might offer prospects for much greater return. When equity investors are nervous and when they aren’t hiding under their beds (as many seem to be doing now), many run into shares of companies perceived to be safer. Many associate safety with large size and recognizable names. A better way to approach this is to emphasize quality-oriented fundamentals like strong finances, good returns on capital, and so forth. FULL ARTICLE.
BY: Marc Gerstein
CATEGORY: What’s Working