momentum investing

Momentum investing looks less rewarding as equity risk normalises across U.S. and EMs, with implications for style rotation and Australia.

Australia’s momentum trade is soaring past global peers, but history says these highs often precede a sharp reversal.

Its long-term returns have been outstanding. Yet eroding fundamentals and today’s prohibitive valuation imply tomorrow’s mediocre return.

Macquarie says its time to give stocks with low momentum and high risk a second chance.