Tag Archives: Momentum

Momentum & the Gambler’s Fallacy

Momentum has been the big surprise for investors this year. Markets may seem largely directionless, but many big stocks have nevertheless carried on rising. Large cap global businesses have become more and more expensive, as investors climb aboard this rising trend. Across Europe, the valuation gulf between global and domestic businesses is at a multi-year […]

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Market anomalies, momentum & the gamblers fallacy

Quirks of investor behaviour get magnified in the summer.  Low trading volumes and a lack of company news can make markets behave oddly.  Investors fall back on folklore and succumb to their own psychological biases. Rules like “sell in May” and “never short a dull market” indicate the unwillingness of investors to take a position […]

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