Momentum is one of the more challenging factors for investors. Although the long-term evidence that supports it is very strong, many investors have a difficult time understanding why something should…
Search Results for: momentum
Bank of America Survey Shows Stagflation Fears
…that destroyed any hope of the Fed being able to slow its momentum as it aggressively raises interest rates, the article contends. 73% of the survey’s respondents believe the economy…
Four Ways Value Investors Can Use Momentum
Value investors in general tend to have an aversion to using momentum in their investment strategies. But the long-term evidence suggests they should rethink that. In this episode we look…
Harnessing Empirical Finance in Long-Term Investing Strategies with Dimensional’s Savina Rizova
…of Barron’s 100 most influential women in finance. We also take a deep dive into factor investing and how Dimensional views the major factors including value, momentum, profitability and investment,…
The Good, Bad and Ugly of Trend Following
…Model, Sector ETF)Start DateMax Loss (with Trend)Max Loss (Buy & Hold)Nasdaq 10010/2/198545.10%82.90%MSCI EAFE8/28/200135.20%61.00%Commodities2/7/200647.10%77.00%Acquirer’s Multiple Investor (CARLISLE)12/29/200840.50%70.90%Quantitative Momentum Investor (GRAY)1/3/200645.40%70.60%Energy12/23/199841.20%72.10%Technology12/23/199852.50%82.00%Financials12/23/199849.40%82.70% Getting Out and Back In The second advantage is trend following is that,…