Momentum and Bubbles

Momentum traders make money violating the first principle of investing: previous performance is not indicative of future returns. As it turns out, what did well yesterday and the day before actually IS more likely to do well today. And Momentum traders, also known as Trend Followers, take advantage of that fact. But such trading, en masse, can lead to price bubbles. Join me and renowned Trend Follower Dr. Kathryn Kaminski as we explore how Momentum traders think about markets and when this strategy works the best.Mentioned in this episode:Dutch Tulip BubbleDr. Kaminski's book: Trend Following with Managed FuturesMIT Professor Andrew LoStocks and ElectionsMarkets' signals pre-Brexit