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History Of Momentum Investing
March 21, 2019
History of Momentum Investing
By Robert Zuccaro, CFA
Momentum investing is a strategy seeking to capitalize on existing trends in the stock market. In a way, it is similar to Newton’s Law “that a body in motion tends to remain in motion”. The momentum strategy starts with identifying and then buying stocks that have posted high price gains over the trailing three to twelve months. It uses a strict set of rules with defined market entry and exit points for each security. Portfolio turnover is high using the momentum approach as momentum trends are constantly in flux.
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