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Stocks with superior fundamentals will normally decouple and start outperforming on a relative basis during:

a) a rampant bull market.
b) a market consolidation.
c) the last legs of an uptrend.
d) a market correction (bear market).

User Zdub
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Final answer:

Stocks with superior fundamentals typically outperform during d) a market correction or bear market, as investors search for quality and safety in more challenging economic times.

Step-by-step explanation:

Stocks with superior fundamentals usually decouple and start outperforming on a relative basis during a market correction (bear market). During periods of market turbulence, where overall market trends are downward, investors tend to flock to stocks with strong fundamentals, such as solid earnings, good management, and healthy financial statements. While a rampant bull market can lift all equities, a bear market often leads investors to be more discerning, searching for stocks that can withstand economic pressures. This flight to quality is not as apparent during bull markets, market consolidations, or the last legs of an uptrend, as these are times when a wider range of stocks might rise together, making it harder for those with superior fundamentals to stand out.

User Crabar
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