The evidence is strong that momentum is a “real” market effect. It has been found in stocks, bonds, currencies, commodities, etc…every place people have looked.

Of course, the more popular momentum stratgies become, the less well they will work. So it’s realistic to expect lower returns from momentum in the future than in the past.

It’s such a pleasure to have a civil disagreement…..now if only the politicians could do that…maybe we’d get somewhere.

Great post. Thanks again!

And thanks again for letting me write a guest post.

I’m going to send you my book. It goes into this subject in great detail.

I look at a blended performance which is proprietary and I review it on a periodic basis which is also proprietary. I don’t bet on continued performance – I track it and update my holdings on a fixed schedule based on the current rankings.

I’m not able to discuss performance even in general terms on this blog….I’m not trying to sell my services here and don’t want to misunderstood.

Hope that helps friend.

Right, so that’s the bet. But my question is why would you make that bet? What’s the reason other than past performance?

Also, do you choose funds that have outperformed over the last 3 months? 6 months? 12 months?

And how long do you bet on their continued outperformance?

And why would you choose those specific periods? Again, is there any reason other than data that “that’s what’s worked in the past” ?