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

Om Podcasten

The podcast for the adaptable investor. Investigating the financial markets through the eyes of a (somewhat) recovered physicist who started Wall Street's first cloud-based financial technology firm. Expect more psychology than physics, more behavioral economics than traditional economics, and more art than engineering. If you're ready to question some of your pre-conceived notions, explore the inner working of investing and hear how professionals think about markets, come join me on this not-so-random walk down Wall Street…