Mistakes of Momentum Investors
Like most investors, those using momentum are often guilty of chasing performance. In fact, momentum requires that we do this. But it should be done in a disciplined and systematic way. Performance chasing should not be due to myopia, irrational loss aversion, or other psychological biases. Behavioral Challenges It is not always easy adhering to a disciplined […]
Book Review of Quantitative Momentum
I have been looking forward to Jack and Wes’s new book. It is the only book besides my Dual Momentum Investing that relies on academic research to develop systematic momentum strategies. My book uses a macro approach of applying momentum to indices and asset classes. Wes and Jack (W&J) take the more common approach of applying momentum […]
Book Review: Standard Deviations, Flawed Assumptions, Tortured Data and Other Ways to Lie with Statistics
Years ago, when asked to recommend some good investment books, I often suggested ones dealing with the psychological issues influencing investor behavior. These focused on investor fear and greed, showing “what fools these mortals be.” Here are examples: Devil Take the Hindmost: A History of Financial Speculation by Edward Chancellor, and Extraordinary Popular Delusions and the Madness of […]