- 2022 monsters come unstuck.
- Is the screen ill-suited to current markets?
Beneath the jargon, the academic literature on momentum investing can sometimes seem bafflingly simple.
In one 2002 study, researchers concluded that stocks exhibiting past positive autocorrelation can be a source of momentum. Put simply, this means you can have some confidence that today’s price jump in a strong momentum stock will mean another price jump tomorrow.