Buying on Impulse (Change in Momentum)
September 14, 2005 - Momentum Investing
In their September 2005 paper entitled “Acceleration Strategies”, Eric Gettleman and Joseph Marks examine the change in six-month stock price momentum (a second derivative of price with respect to time, which the authors call “acceleration”) for individual companies as a potential indicator of future performance. Does increasing (decreasing) stock price momentum indicate commensurate relative outperformance (underperformance)? Based on monthly data spanning 1926-2003, they conclude that: Keep Reading