This investing trend is your friend—Until it isn’t
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It isn’t hard to understand why some investment strategies perform well in the long run. But one of the best, momentum investing, is a head-scratcher—it’s too easy.
An investing factor like value works because it is logical to buy low and sell high; quality performs because well-managed companies tend to survive crises and are more profitable; high dividend-paying stocks thrive because you at least get cash, and they tend to have reasonable valuations.
Momentum makes less sense to a thoughtful,…
