Fact, Fiction and Momentum Investing

Momentum investing is surrounded in myth. While momentum has been proven many times to be a successful investing and trading strategy, there are still many investors who will stay away, citing one of many common reasons as to why there're avoiding the strategy.

A recent study, entitled Fact, Fiction and Momentum Investing, by Clifford S. Asness, Andrea Frazzini, Ronen Israel and Tobias J. Moskowitz1, set out to try clear up much of the confusion surrounding the momentum investing process, disproving many of the often-repeated myths.

Common myths surrounding momentum investing

The study looked at ten common myths surrounding momentum investing and uses data from multiple studies, using unrivalled data sets to dispel...