The Dead versus the Living Stocks

Measuring the Zombification of Stock Markets Around the World

Nicolas Rabener
10 min read
2 Nov 2020

SUMMARY

  • Zombie stocks are a diverse group, both from a country and sector perspective
  • Zombie stocks were fundamentally riskier, yet outperformed non-zombie stocks over the last year
  • Oddly, investors need to pay up as they are also more expensive

INTRODUCTION

Walking through financial centers like London or New York in the spring of this year felt in many ways like being a zombie movie. Shops were boarded up, restaurant and cafes closed, and office towers unoccupied. The few people walking outside were quick on their journeys and keen to avoid any human contact. Food was getting scarce.

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