are there any ‘normal’ securities who returns are negatively correlated with the overall market? Normal meaning restricted to common shares, bonds and currency. I know consumer staples have a low beta but are there any common stocks that have a negative beta?
Ultrashort ETFs
Gold ETF, Yen, Swiss Franc
I don’t think it’s a dumb question. Quite interesting actually. In terms of common equities, I think it would be very rare to find a company with a true negative beta. Usually firms listed as having negative beta are micro-caps with unusual stock specific goings-on. Not exactly investment grade. I just checked a screen I use that has around 4,000 Japanese companies in it. Plenty are listed as having negative betas, but none with a market cap >Y50bn (c.$500m). Thinking about it intuitively - what kind of company could expect to improve its earnings sufficiently in a recession that its share price will increase despite the market undergoing a major de-rating? What kind of listed company would you expect to be trading higher than it is today if the market crashed next week and the S&P500 was at 600? Nothing is coming to my mind apart from short ETFs already mentioned.
check out the threads on negative beta stocks from a year ago - that’s when you should have been buying them. Why would you wanna be in negative beta now and miss out on the upswing starting over the next 6-12 months? The best years for the overal market are following major collapses - this time will probably be no different - only question is in the timing…Now’s the time to start looking at the under-priced pro-cyclicals + commodities (as hedge against inflation as governments print money like there’s no tomorrow)… just a thought…