Momentum | September 12, 2017

Category: Quantitative Insights

Very little has changed as far as momentum is concerned. There does appear to be some strength in energy, metals, and foreign developed currencies. However, this past Monday the S&P 500 and the MSCI Emerging Markets Index achieved new all-time highs, albeit on low volume. This coincides with year-to-date lows for Treasurys fueled by the belief that the Federal Reserve is going to be less hawkish follow the departure of Fed Vice Chair, Stanley Fischer.

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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