Momentum is a word that gets thrown around a lot. I personally like to measure momentum using a 14-period relative strength index (see here), but different people have different definitions. Fine. For today, we’ll argue that “momentum” stocks are those listed in the MSCI USA Momentum Index. Looking at these stocks as a group, I think they are going to continue to get destroyed going forward, particularly relative to the rest of the market.
First of all, forget this whole FANG thing. I don’t know who made that up or why people like to limit it to just 4 stocks. I think it’s stupid. They have nothing to do with one another and there should be others included in the list. In fact, in November I wrote a piece about how FANG stocks are this cycles Four Horseman (See here) and was further evidence at the time that made us very bearish U.S. Stocks heading into December and January. That obviously worked out very well.
Secondly, the list of “Momentum” stocks, includes more than just ...
/www.benzinga.com/etfs/broad-u-s-equity-etfs/16/02/6220955/momentum-stocks-are-broken-how-do-we-profit-from-it alt=Momentum Stocks Are Broken. How Do We Profit From It?>Full story available on Benzinga.com
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