Momentum Investing: A Stronger, More Resilient Framework For Long-Term Allocators
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CFA Institute Contributors5.61K FollowersFollow5ShareSavePlay(10min)CommentsSummaryMomentum investing remains a cornerstone of systematic equity strategies, and our recent research shows it is one deserving of allocators’ full attention.Momentum’s long-term persistence is perhaps its most defining feature and the primary reason it remains relevant for investors.The Achilles heel of momentum, however, remains its crash risk. Momentum strategies are vulnerable to sharp reversals, particularly during market regime shifts.We consider Momentum an “eternal” feature of financial markets. But its implementation must evolve. Tara Moore/DigitalVision via Getty Images By Guido Baltussen, PhD, M. Sipke Dom, Bart van Vliet, CFA and Milan Vidojevic, PhD Momentum investing remains a cornerstone of systematic equity strategies, and our recent research shows it is one deserving of allocators’ fullThis article was written byCFA Institute Contributors5.61K FollowersFollowCFA Institute is a global community of more than 100,000 investment professionals working to build an investment industry where investors’ interests come first, financial markets function at their best, and economies grow.