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Episode 043: Eduardo Repetto on factor investing, host Rick Ferri

Bogleheads On Investing Podcast

CHAPTER

How to Use Momentum in Portfolio Management

"We don't want to try to catch a falling knife is a phrase that we hear often with quantitative analysis," he says. "So how do we use momentum? If we have a value strategy, we're buying security have low price." But if the security starts going up in price and instead of being a small cup now becomes a mid cup security, they may be willing to hold it a little bit longer. Why? Because the momentum premium is very, very strong, but it's very short-lived.

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