You should have “Momentum”

Several studies have demonstrated the overall long-term performance of a Momentum approach.  As a reminder, a Momentum investment style suggests to buy (short) stocks that have an acceleration (deceleration) in stock price.

An excellent research (available only on paper) conducted recently by Credit Suisse and London Business School demonstrated that since 1900, a momentum approach would have generated 14.3% versus 9.5% for the overall market.  Although these data were based for the UK stock market, the research confirms that this pattern exists in most countries (with the exception of Japan) and works particularly well in North America.

The stock selection process of the TQI’s ETF Momentum strategy includes Momentum criteria to capitalize on this opportunity.

Disclaimer: For general information purposes only.


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