Dobrynskaya, a 37-year-old London School of Economics PhD who spent years writing papers on carry trades and momentum investing
, first looked at Lego as a topic for research after her son's hobby steered her to a community of investors discussing how to profit from buying and selling the toy.
It goes by the name of herd behaviour, or momentum investing
, and it is the only thing that can explain why, in the 16th century, people were paying as much for a single tulip bulb as they would pay for four fat oxen, two tonnes of butter or a thousand pounds of cheese.
It's a form of momentum investing
-- buy what's done well recently in the hopes that it keeps doing well.
"A careful review of the competitive landscape reveals that most claims of the merits of momentum investing
are not supported by data, particularly not live mutual fund results, net of trading costs and fees," he notes.
Almost two years ago, I created a momentum portfolio comprising 20 shares to see whether a 'momentum investing
' could prove a legitimate adjunct to what I would call regular equity investing.
20660), authors Benjamin Chabot, Eric Ghysels, and Ravi Jagannathan provide new evidence on the risks and returns of momentum investing
using historical data from Victorian Era London and the mid-1920s to the present-day United States.
The Fool responds: Momentum investing
and business cycle risk: evidence from pole to pole, Journal of Finance 58: 2515-2547.
Dual Momentum Investing
details the author's own momentum investing
method that combines U.S.
Martin (2001) "Understanding the Nature of the Risks and the Source of the Rewards to Momentum Investing
," Review of Financial Studies 14(1): 29-78.