Recent studies have shown that momentum
investing can generate higher returns than
that of benchmark indices.
It 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.
It is based on the philosophy that there can be
noticeable trends in asset prices and that these
trends tend to persist over time.
Momentum investors generally do not conduct
a deep analysis of the fundamental or intrinsic
value of the assets in which they invest their
money.