As Dow Plunges, Beware of 'Low-Beta' Stocks

U.S. stocks shed more than 2% at the market's open Tuesday after a similar decline Monday, as Greece's call for a voter referendum threw a newly inked European debt deal into doubt. This, after October proved the best month for stocks in decades. Head-scratching volatility like that has investors scrambling for "low-beta" shares, which are supposed to offer a smoother ride. But there are two problems with that strategy.