Thursday, April 5, 2007

Volatility a key driver of quality assets -Merrill

(Reuters) - In a note to clients, Merrill Lynch's chief U.S. strategist, Richard Bernstein, said higher-quality stocks and bonds, typically those of larger-capitalization companies, will outperform lower-quality equities, or those of small-cap firms, because they've typically outperformed as the Wall Street's fear gauge, the VIX, has risen.

"We continue to believe that volatility will be a more significant driver of quality performance than will be the slope of the curve," Bernstein said.


Read more at Reuters.com Bonds News

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