Momentum investing: Riding the wave of winning stocks
What happens when the inertia shifts?© Lustre Art Group/stock.adobe.com, © Hannah/stock.adobe.com; Photo illustration Encyclopædia Britannica, IncAt any given time in the stock market, there are outperformers, underperformers, and those that perform commensurately (hot, cold, and just right). Contrarian investors look for the cold ones—the laggards. Momentum investors chase the hot ones, with the expectation that today’s winners will keep...