Category: Momentum Investing

Those of us who were investing during the dot.com bubble probably remember Federal Reserve Board Chairman, Alan Greenspan’s “irrational exuberance” speech in December 1996: Lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know... [more]  

Momentum is the tendency of recent price changes in an investment or asset class to persist for some period of time into the future. The evidence for momentum is pervasive, supported by academic and practitioner research and more than 300 published papers over the past decades. We won't attempt to summarize the momentum literature, but encourage investors to learn more about it, starting with the ... [more]