Academic research has found 3 strategies, or factors, that have historically outperformed the S&P 500. Small caps and value stocks were covered in previous posts. The third factor, price momentum, will be discussed here.
Price Momentum – You Need to Get to Know Her
Back in my college days, a good friend of mine and I would always try to set each other up on blind dates. If I used the term “great personality” early in the description of the young woman, then he always assumed she wasn’t attractive. It got to be such a running joke that as soon as one of us said “I’ve got someone I’d like you to meet”, the other would immediately respond with “How’s her personality?” [Read more…] about 3 Investment Strategies That Beat the Market (Pt 3)