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Category: Momentum

Momentum in Name Only

“The premier anomaly is momentum.” – Eugene Fama and Kenneth French There is momentum in theory and there is momentum in practice. Momentum in theory is the premier market anomaly. Momentum in practice is a bit more complicated. What is the look-back period (3 months, 6 months, 12 months, etc.)? What is the rebalance frequency […]

Factors, Fortitude, and Faith

“Fortitude is the guard and support of the other virtues.” – John Locke Factors, factors, factors. Everyone seems to love factors these days. Why? Because they have exhibited high returns in the past and investors love high returns. But just because factors have outperformed over long periods of time in the past doesn’t mean they […]

Chasing Momentum

Momentum is one of the most powerful and persistent market anomalies. The evidence supporting this assertion is overwhelming. The idea that buying past winners and selling past losers (from 1-12 months) can lead to outperformance, though, is still bewildering to many. It’s not intuitive, especially for value investors, to believe that past performance in security […]

“There is a thin line that separates laughter and pain, comedy and tragedy, humor and hurt.” – Erma Bombeck In times like this, where everyone seems to panic out of not just asset classes, but also strategies, introspection is a worthwhile endeavor.  After having been on the road for nearly two years now and presenting […]

“Don’t wait until you’re in a crisis to come up with a crisis plan.” – Phil McGraw Following a second nasty week for stocks, the media is now beginning to ask if we are on the verge of a recession.  Small-cap stocks have entered “bear” territory after a 20+% drop off the highs.  Recession or […]