Market darlings took a hit as momentum funds faced sharp declines amid volatility Momentum investing, a strategy that capitalizes on the continuance of existing market trends, has historically yielded substantial returns. However, recent market dynamics have led to significant setbacks for momentum funds, prompting investors and analysts to scrutinize the causes and implications of this downturn. Understanding Momentum Investing Momentum investing involves purchasing securities that have exhibited strong performance over a specific period and selling those that have underperformed. This approach operates on the premise that assets demonstrating upward price trends will continue to appreciate, while those on a downward…
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