Investing

The knee-jerk reaction of investors to geopolitical crises is to extrapolate the most recent events into the future and expect an escalation of a new conflict. This is when geopolitical experts are on TV and in the press with their predictions of World War III or a 1970s style oil shock and stagflation, etc. Ignore those warnings and doom and gloom forecasts as in most cases they are based on an assumption that the crisis…

2. Momentum Works Globally The momentum effect appears consistently across international stock markets, with premiums comparable to those in the U.S—there were positive momentum returns in all 31 countries with sufficient data since 1990, with the majority showing statistically significant results. 3. Momentum Is Multi-Dimensional Perhaps the most innovative finding is that momentum extends far beyond simple price trends. The…