Momentum

Category: Quant Insight

Momentum for short- and long-term in stocks and energy commodities still look set for more gains. Foreign developed markets have slowed down but as we enter the final weeks of the year we think it might be a good opportunity if prices rally. Also, keep an eye on energy commodities which continue to show more growth.

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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