Momentum anomaly persists; limited capital chasing it.
Momentum investing has been persistently profitable because it is driven by extrapolators (return chasers) whose behavior creates trends, and the capital allocated to pure momentum strategies remains limited relative to the size of the market. This prevents momentum from being arbitraged away, making it a robust anomaly.
For safe assets, Treasury inflation-protected securities (TIPS) are probably the lowest risk asset for long-term investors focused on spending power, and regular Treasuries are also attractive with high yields.
For safe assets, Treasury inflation-protected securities (TIPS) are probably the lowest risk asset for long-term investors focused on spending power, and regular Treasuries are also attractive with high yields.