- There is a strong historical precedent that companies outperforming the market in the past, will continue to do so in the near future.
- Emotion-based biases create this market inefficiency which, if taken advantage of, can be profitable for investors.
- “If stock prices either overreact or underreact to information, then profitable trading strategies that select stocks based on their past returns will exist.” - Jegadeesh and Titman.
- MTUM is the leading momentum-based ETF and is my pick as the best way for investors to profit off of the consistent returns created by momentum.
For further details see:
MTUM: Unlock The Power Of Confirmation Bias