Assets that have been rising tend to keep rising, and those that have been falling tend to keep falling. That simple observation, backed by decades of academic research, is the foundation of momentum investing, and The Momentum Engine explains how to put it to work without a trading desk or a PhD. The book traces the origins of momentum, reviews the empirical evidence across US, European and global markets, and walks through the classic strategies and their modern refinements, including absolute versus relative momentum and Gary Antonacci's Dual Momentum approach. Dedicated chapters cover momentum in stocks, bonds, commodities and currencies, and show how to apply it with ordinary funds and ETFs. Just as important, it addresses the dangers, from momentum crashes to overtrading, and offers practical recommendations for staying disciplined. Written for curious individual investors who want a rules-based method they can actually follow.
Assets that have been rising tend to keep rising, and those that have been falling tend to keep falling. That simple observation, backed by decades of academic research, is the foundation of momentum investing, and The Momentum Engine explains how to put it to work without a trading desk or a PhD...