Category: Quant Insight

Short-term momentum for stocks has deteriorated but could swing back to positive. It appears the wait and see pattern of the markets is still in play.

Momentum measures the rate of acceleration, either positive or negative, in a security’s price and may indicate which markets are positioned for gains or losses. Investing based on momentum entails establishing long positions in securities with positive recent returns and short positions in those with negative recent returns. Momentum in asset classes may illustrate the development of trends in the market.

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