Momentum Investing

Recently, many academic studies have shown that momentum investing can generate high returns that comfortably beat the benchmark indices.

• Momentum investing refers to a style of investing wherein investors purchase assets such as stocks or bonds that are consistently rising in price while selling assets whose prices are falling.
• Momentum investors buy assets with rising prices in the hope that the upward price momentum of these assets would continue, thus allowing them to sell these assets at higher prices in the future to make profits.
• It is based on the philosophy that there can be discernible trends in asset prices ....