Letter To Editor
Recently I had been studying about the different types of investing philosophies and was glad to have found that DSIJ covered a story on ‘Momentum stocks’. Further to the fact that it was clarifying I would want to know if we can find momentum stocks in a market correction phase.
Thanking you in advance.
- Abhishek Jain
Editor Responds: Thank you for your query and glad to know you liked our story on momentum investing.
Normally momentum investing strategy works best in bull market set up. In correction phases the momentum stocks may not work as per expectation and it can be a frustrating experience for investors. As far as possible investors should use momentum investing strategy in bull market conditions or normal market conditions for optimal risk adjusted returns.
Once again we thank you for your query. Do keep writing to us.