Twin Momentum: A Combination of Fundamental & Price Momentum

By Justin J. Carbonneau (@jjcarbonneau) —  An object at rest stays at rest and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force. -Isaac Newton Momentum investing, or buying stocks exhibiting strong price performance relative to other stocks nicely aligns with Newton’s principle. There are a numerous academic studies and white papers backing-up the robustness of the momentum factor. The knocks… Read More

BlackRock Bets on Momentum Strategy Comeback

Even as the momentum strategy has become “deeply unpopular” from its long stretch of underperformance, the worlds largest money manager is “staying the course” with the strategy, according to an article in Bloomberg. “It’s a contrarian position, to say the least,” the article says, adding that momentum has become corelated with defensive names and “less in sync with those that tend to power rallies like tech” According to Holly Framsted, head of U.S. factor ETFs… Read More

Blending Strategies to Reduce Volatility and Boost Results

No single investment strategy ensures success and, as we have emphasized time and again, zig-zagging from one to another is a futile (and often costly) exercise. In a recent article for Nasdaq, Validea CEO John Reese explains how combining different investment methodologies can reduce overall volatility in a portfolio and lead to improved long-term results. Since inception (in 2003), Validea’s Momentum Investor portfolio has returned 192.2% and our Value Investor portfolio has returned 238.3% (outperforming… Read More

Guru Stock Screen of the Week: The Top Momentum Plays in Today’s Market

This week, we bring you the Stock Screen of the week from Validea. On Validea.com, you can screen for stocks using the site’s Guru Stock Screener, which scores stocks based on the fundamental stock selection criteria of legendary investors. The firm’s models are based on investing legends such as Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joel Greenblatt and others. This week’s screen is based on Validea’s Momentum strategy, which… Read More