www.marketwatch.com
“Big Mo” refers to momentum, an eternal feature of global financial markets where past winners tend to keep winning and past losers keep losing. This persistent phenomenon drives significant asset price trends, often detached from underlying fundamentals. Momentum is driven by herd behavior, behavioral biases, and systematic trend-following strategies. While it offers potential excess returns, it also creates volatile bubbles and crashes. Consequently, understanding momentum is essential for navigating the psychological and structural dynamics of market cycles worldwide.
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