Conventional wisdom says that it should be doomed once any stock-picking strategy nears “sure thing” status. If everyone knows the secret to vast riches, how could the strategy possibly work anymore?
But there is a successful strategy that has been followed — and widely discussed — for decades, yet somehow persists as a relatively reliable money-maker: “momentum” investing, which is betting that the stock market’s recent winners will remain winners in the near term and, likewise, that the recent losers will remain losers. The strategy also is known as “relative strength” investing.
Running on a treadmill is one of my least favorite activities: you expend a lot of energy but end up exactly where you started, only out of breath. So far in 2026, financial markets are behaving similarly. There’s intense activity, but the major indices have gone almost nowhere. As of mid-February, the S&P 500 is […]
Investors face many choices when selecting investments. Historically, the main divide was between fundamental and technical trading. The growth of computer systems for trading has introduced a potentially larger variable that will only increase as AI advances, whether in systematic (rules-based) or discretionary (human judgment) trading. In just my 20 years working in the industry, […]
Is AI the next step in the evolution of trading? History proves new tools storm the markets, then high adoption erases their edge. What can futures trading history teach us about AI’s trajectory? The 1980s: Rise of Rules-Based Trading Building on simple regression models that aimed to identify patterns across sectors, the 1980s showed that […]