INPAP - Factor Momentum Part 1 - How Recent Factor Performance Can (Or Can't?) Predict Future Performance

• Market timing can be a very attractive and tempting strategy in theory, particularly in challenging markets like today but can be difficult to achieve in real-time.
• “Factor momentum” is using the recent price action of a given factor (value, growth, quality, etc.) to predict future returns for the factor.
• Factor momentum is an extension of the market timing adage that “what worked recently (strategies, factors, etc.) should continue to work in the future”.
• In this series, we break down factor momentum to see if it has been a viable investing strategy.
• In this installment, we look at 6 different investing factor groups through the lens of factor momentum, and explore factors currently with positive factor momentum.

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