LRN - How To Increase Return And Control Market Risk With Momentum Stocks
Momentum is a pervasive force in the stock market. In other words, stocks that are rising strongly tend to continue doing so more often than not. There is abundant statistical research showing that investors can obtain superior returns by investing in high-momentum stocks over the long term.
On the other hand, momentum is also a double-edged sword. Stocks that are rising strongly can also fall much harder than average when the trend reverses its course. Investing in high-momentum stocks can produce market-beating returns over the years, but also big drawdowns and above-average volatility from time