Momentum

Category: Quant Insight

Commodities are now the best performing asset class of 2018, driven mostly by energy and metals. This follows years of lackluster and even deeply negative returns for all commodities. We believe the current level of short- and long-term momentum for energy and metals signals that the positive trend should continue.

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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