By Jack Forehand, CFA, CFP® (@practicalquant) — The market has changed in the wake of the pandemic. Retail trading is up dramatically. So is options activity. And narrative is driving returns much more…
Tag: Momentum Investing
Amplifying Momentum’s Alpha Potential
By Justin Carbonneau (@jjcarbonneau) — Momentum investing can sometimes be looked at as a more speculative type of investing since it involves buying stocks that have gone up the most,…
Finding the Market’s Top-Performers
Although one-day share price movements get a lot of attention, there is a “better measure of price strength that investors should be paying attention to—price momentum over time.” This according…
The Changing Nature of Momentum
By Jack Forehand (@practicalquant) — Investors sometimes want to pigeonhole investing factors. We want to look at a factor and associate a certain type of company with it. Doing so…
Momentum Strategy and How to Temper It
While the coronavirus pandemic “rocked” global markets in the first quarter of 2020, a recent Morningstar article reports that momentum exchange-traded funds navigated fairly well, an unusual occurrence that cannot…
An In Depth Look at Momentum Investing and Trend Following with Jack Vogel (Ep. 69)
There is perhaps no investment factor with more long-term data to support it than momentum. But despite that, its real world usage lags far behind other factors like value. Part…
The Basics of Momentum Investing
By Jack Forehand, CFA (@practicalquant) We often write about factor investing on our blog. We talk about factors like value, momentum, quality and low volatility and their practical use in the real…
Twin Momentum: Combining Fundamental and Price Momentum Together In One Quantitative Model (Ep. 59)
The academic research supporting the momentum factor is very strong. But most of that research focuses on the momentum in a stock’s price. An interesting research paper written by Dashan…
Excess Returns, Ep. 25: An In Depth Look at Momentum Investing
Momentum investing is difficult to understand for many investors. While a concept like value that involves trying to buy stocks at a discount to what they are worth resonates with…
Hulbert: A New Approach to Momentum Investing
New research has shown that a more effective way to profit from the momentum effect is to buy the “hottest” factors rather than the best-performing stocks. This according to a…