Market Factors: How investors can ‘seize the alpha’ and own higher growth stocks while managing risk
A new stock picking strategy called Positive Triple Momentum (PTM) aims to help cautious investors capitalize on growth while managing risk. The strategy focuses on companies with improving stock prices and earnings forecasts, which have historically outperformed those with negative momentum. Additionally, the closure of the Strait of Hormuz has driven investors towards AI-related stocks, contributing to a recent rally in equity markets.
- ▪Positive Triple Momentum (PTM) stocks have historically outperformed negative triple momentum stocks over a 16-month period.
- ▪The average return for PTM stocks has been 8.8 percent since 2003, with returns jumping to 15 percent when shorting negative momentum stocks.
- ▪The closure of the Strait of Hormuz has led to increased investment in AI-related stocks, which are less dependent on global economic factors.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThis issue of Market Factors starts with an interesting stock picking strategy that appears to offer both upside opportunity and risk management. We move on to how the closing of the Strait of Hormuz may have acted as a catalyst for the equity market rally, and the diversion lauds a social media conspiracy debunker. Stock picksTriple momentum means upside potentialBofA Securities global quantitative strategist Nigel Tupper offered a solution for cautious investors who feel left out of the sharp, post-March 30 equity rally. In a Wednesday research report called Seize the Alpha, Mr.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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