While these short-term challenges are unfortunate, we remain confident in our ability to continue executing against our Creating Momentum Strategy
, which helped us deliver top-line growth of 2.1 percent in fiscal-year 2018.
The rewards to a one-month industry momentum strategy
are also sizeable.
Such strategy is called as momentum strategy
which involves buying of winner stocks and selling of loser stocks i.e.
A monetary momentum strategy
invests in the market when a monetary policy shock is expansionary, and shorts it when the shock is contractionary.
The index underlying the Arrow DWA Country Rotation ETF offers a systematic, price momentum strategy
that capitalizes on changing international market trends.
The sample size is small, but even taking the broader US mutual fund universe and screening for those that exhibit momentum strategy
tendencies shows widespread underperformance.
They concluded that having a momentum strategy
will profit the speculators at the expense of the hedgers.
Hameed and Yuanto (2002) also examined 6 emerging stock markets of Asia and reported that "unrestricted" momentum strategy
has resulted in non significant momentum profits.
The standard index returned an annualized 4.57% from 1999 through 2012, while an equally-weighted portfolio gained 9.06%, the momentum strategy
added 8.92%, an equal-risk index climbed 8.33%, and the fundamentally-weighted strategy earned 7.63%.