Momentum

Category: Quant Insight

Momentum is improving for all stock asset classes and energy commodities. We believe this all points to increasing inflationary pressures. It’s hard to argue against inflation especially with strong job numbers.

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 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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