Why Do You Think Momentum Works?

Investors always want to see some sort of fundamental underpinning for what they're doing, whether it's value or growth. Momentum really doesn't have that tie in and so the reason it works is behavior. First is anchoring, or conservatives and people jus don't except what what starts to happen right away. And that's influenced also by the disposition effect. Pepill have a tendency to want get rid of their winters too soon, hold on to their losers. That also applies when getting into positions. You tan to be scepticalt go up. U you've got a lot of different things going on there.

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