Momentum-stock investing just became a whole lot cheaper
Here’s my chart for today. I’ll talk about it shortly after 3:30 p.m. Eastern (12:30 p.m. Pacific) on the Bloomberg Businessweek radio show. Also, I’ll present my Stock of the Day just after 4:15 p.m. (1:15 p.m.) on social media. You can hear me on Bloomberg Radio or see me at Bloomberg Global News on YouTube.
Favoring the fastest-rising shares has become a much cheaper investment strategy, thanks to an emergence of industries such as energy and finance as market leaders. The MSCI World Momentum Index shows as much. The indicator consists of stocks in 23 markets with the biggest price changes over six and 12 months. Two weeks ago, the index’s valuation relative to projected earnings tumbled 39% after a twice-yearly overhaul was completed, according to data compiled by Bloomberg. The plunge was highlighted by Michael Venuto, chief investment officer at Toroso Investments, in a Twitter post Thursday.