…ranks them using a score from 1 to 100. The higher the relative strength, the better the stock looks from a momentum standpoint.” Downsides of Momentum Reese notes that momentum…
Search Results for: momentum
The Changing Nature of Momentum Investing (Ep. 82)
Investors tend to associate momentum with growth stocks. If you try to name a typical momentum stock off the top of your head, you will probably think of names like…
The Changing Nature of Momentum
…term periods, so just because a group of stocks have long term momentum doesn’t mean they regularly exhibited intermediate term momentum throughout the period. Momentum and the Other Major Investing…
Aswath Damodaran on Today’s Markets
…want it to be.” Momentum investing “works until it doesn’t,” he said, adding that momentum investors can be extremely successful if they can sense when things are shifting—but that it…
Momentum Strategy and How to Temper It
…Adjustments: By “adjusting each stock’s momentum for its historical risk”, managers can “shift their focus to stocks with more consistent price momentum, which have a better chance of maintaining their…
Munger on How Robinhood is Luring Novice Investors in ‘Dirty Way’
…the manic momentum-driven trading activity by amateur investors and said commission-free trading apps like Robinhood were partly to blame for the bubble.” This according to a recent CNBC article. According…
Bitcoin Grows Up
…and the cycle continues. Eventually, however, the momentum stops, for one reason or another, and assets exhibiting momentum are susceptible to crashes. This is certainly the history Bitcoin has had…
Some Practical Ways to Look at Blending Factors
…into a combined portfolio. The high-level principles of blending factors are pretty straight forward. For example, if value produces an excess return over time and momentum does too, but they…
Bitcoin for Your Portfolio?
…a role in diversifying a portfolio,” but registers skepticism regarding its role as an investment asset. “Its popularity with momentum investors and speculative buyers makes it prone to pricing bubbles…
Swedroe on the Battle of Factor Models
…from July 1990 through October 2018 and found the following: Momentum showed the highest average return while size showed the smallest average return. The CAPM is “dominated by all other…