There are several behavioral biases that most investors exhibit in their decision-making. But before we delve deep into it, let us try to fathom why does the momentum strategy at all work? This approach primarily tends to follow the adage, “the trend is your friend.” At its core, momentum investing is “buying high and selling higher.” It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. ![]() One of the most successful game plans to beat the blues is to bet on momentum stocks when value or growth investing fails to generate the desired profits. With uncertainty becoming the norm of the day, investors often seek to employ time-tested winning strategies to fetch sustained profits. The Fed also indicated earlier that there might be just another hike in the current year depending on the macroeconomic factors, as tightening credit conditions could put pressure on the economy. Investors widely expect the Fed to raise the interest rate by a quarter percentage point one more time before holding it in the near term. With JPMorgan emerging as the highest bidder for the weekend auction, it acquired all of the troubled lender’s deposits and a “substantial majority of assets” to strengthen its regional footprint.ĭata from the March personal consumption expenditures (PCE) price index, a leading indicator of consumer inflation, revealed a 0.3% rise for the month, in line with broad-based expectations. regulators seized the mantle and asked big banks to submit final bids for the takeover. ![]() However, the frayed investor nerves were soothed as the U.S. The regional bank struggled with deposits falling more than 40% in the first quarter, triggering widespread fears of another lender biting the dust after the collapse of two other mid-sized banks. The equity market has witnessed intense volatility over the past couple of days as a relatively healthy earnings performance from hitherto reported companies was partially offset by the government’s seizure of First Republic Bank and its subsequent sale to JPMorgan Chase.
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