momentum in stock returns

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date momentum in stock returns beliavsky 01-07-2008  Re: momentum in stock returns beliavsky 01-14-2008
Posted by on January 7, 2008, 9:52 am When people discuss stock-picking strategies here, usually they talk about value investing. I think momentum should also be considered as a factor -- it has outperformed value over time, according to the "Crossing Wall Street" blog http://www.crossingwallstreet.com/archives/2008/01/follow_up_on_mo.html http://www.crossingwallstreet.com/archives/2007/12/the_incredible.html Of course, one can and probably should use a multi-factor model. One advantage of using momentum for the individual investor is that it is very easy to get the needed data -- historical stock prices. Posted by on January 14, 2008, 9:53 am On Jan 7, 9:52 am, beliav...@aol.com wrote: > When people discuss stock-picking strategies here, usually they talk > about value investing. I think momentum should also be considered as a > factor -- it has outperformed value over time, according to the > "Crossing Wall Street" blog > > http://www.crossingwallstreet.com/archives/2008/01/follow_up_on_mo.htmlhttp://www.crossingwallstreet.com/archives/2007/12/the_incredible.html CXO Advisory is a good site that summarizes academic investment research for investors, and in a post January 14, 2008 - Fama and French Dissect Anomalies http://www.cxoadvisory.com/blog/external/blog1-14-08/ they discuss a paper "Dissecting Anomalies" http://papers.ssrn.com/sol3/papers.cfm?abstract_id=911960 by Fama and French. Momentum is found to be an important anomaly. Similar Threads Posted Vanguard's misleading advertisement -- style momentum works October 21, 2008, 5:23 pm Question about re-investing returns... November 26, 2006, 5:35 pm Returns on apartment rentals January 7, 2007, 10:12 am Equity returns since 12/31/1999 April 18, 2007, 2:17 pm total returns over the last 9 years March 26, 2008, 11:57 am Index annuity real returns April 24, 2008, 5:53 pm Do "total returns" include fund operating expenses? May 11, 2007, 4:57 am Where to get stock volatility? September 29, 2006, 11:51 am AT&T Wireless AWE stock is it of any value October 2, 2006, 5:03 am Value or Growth Stock December 29, 2006, 8:19 am