What Investors Need to Know About Momentum Investing

In this episode, we take a deep dive into momentum investing. We discuss the different types of momentum, why it works, how it is measured and how it is used to construct portfolios. We also cover trend following, the behavioral challenges of momentum and how to think about momentum in the context of a financial plan.

#momentumstocks #investingstrategies

00:00 - Intro
02:35 - What momentum is and why it is hard for investors to believe in
06:49 - Momentum is not growth
08:49 - Why momentum works
14:04 - How to measure momentum
22:14 - The many ways to use momentum
24:20 - The importance of consistent momentum
25:50 - Transaction costs, momentum crashes and the downside of momentum
30:15 - Turnover, rebalancing frequency and managing momentum portfolios in the real world
35:41 - Time series momentum
38:41 - The behavioral challenges of time series momentum
41:23 - The benefits of multiple lookback periods
42:47 - What us dual momentum?
45:56 - Thinking about momentum in a financial planning context

ABOUT THE PODCAST
Learning how to be a financial planner is one thing. Doing it is another. Follow along with new financial planners Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau) as experienced veteran Matt Zeigler (@cultishcreative) helps them navigate the complex world of financial planning and learn about the most important topics that impact all of our financial futures. From investments to retirement to college planning to estate planning to insurance and beyond, we will cover the major financial planning issues that impact all of our lives and will provide a framework to help investors tackle them. We hope you will join us on our learning journey.

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