Standard Momentum - What Type of Portfolio Are You Trading?

There are at least hundreds of ways to define momentum. Standard momentum is basically favoring the stocks that have the best performance over the last year, excluding the most recent month. That's standard momentum and it had its first peak in 1999,. Another peak in 2002, another peak in 2007, and then after the 2009 crash, you've been struggling your way back since then. You still, to this day, are below the 1999 peak. That means for 18 years, you haven't made money with momentum. So when it crashes, it crashes so hard that you better not be using it when it crashes.

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