linkedin
BROUGHT TO YOU BY
Exclusive Access, Inclusive Growth

WELCOME TO ET PRIME

BROUGTH TO YOU BY
Exclusive Access, Inclusive Growth
ET Prime
Investing

The new intelligent investor: momentum pips value-investing in the age of shorter market cycles

The markets have evolved over time and their dynamics have changed. In the age of information explosion, high-frequency trading, and lightning-fast liquidity, market swings are wilder and quicker — thereby marring the efficacy of traditional value-investing. In contrast, momentum stocks have been on a roll and fund managers today are willing to pay a premium for value.
font size
FONT SIZE
save
SAVE
saved
SAVED
Gift this article
GIFT ARTICLE
pravin
15 Jun 2020 5 Mins Read 7 comments
Getty Images
The cynic knows the price of everything and value of nothing. — Oscar Wilde. When the Covid-19 pandemic hit the Indian stock market with the Nifty50 index plummeting 35% in late March from its January 2020 peak, bargain hunters rushed in to lap up beaten down value-stocks. They had done it before, many times over, and were
value investing is indeed an art, but not all investors are artists. In contrast, momentum investing is system-driven by machines so anyone who puts in the required effort can learn it. And if Wilde were a fund manager today, he would have probably observed that “the intelligent investor knows the price of value.” ( Graphics by Sadhana Saxena)
The cynic knows the price of everything and value of nothing. — Oscar Wilde. When the Covid-19 pandemic hit the Indian stock market with the Nifty50 index plummeting 35% in late March from its January 2020 peak, bargain hunters rushed in to lap up beaten down value-stocks. They had done it before, many times over, and were value investing is indeed an art, but not all investors are artists. In contrast, momentum investing is system-driven by machines so anyone who puts in the required effort can learn it. And if Wilde were a fund manager today, he would have probably observed that “the intelligent investor knows the price of value.” ( Graphics by Sadhana Saxena)

The latest from ET Prime is now on Telegram. To subscribe to our Telegram newsletter click here.

Gift this story

YOU CAN GIFT 0 MORE STORIES THIS MONTH

Maximum 10 Email IDs allowed

300 characters remaining

Gift Sent Successfully

Limit Reached
Limit Reached

You’ve gifted all the 0 articles from your monthly gift bucket!

Please come back next month.

0 more articles will be waiting for you in your gift bucket.

CONTRIBUTORS WHO HAVE COMMENTED ON THIS STORY

test

user Manas Vr

test

user Pravin Palande ET Prime, Editor - Markets and Finance

test

user Anish QED Capital Advisors LLP, Managing Partner

test

user Kunal Shanker InterContinental hotels Group, GENERAL MANAGER

Current Edition

Message from Planet Labs’ eye in the sky: India is a medieval knight in the age of modern warfare
Space

Message from Planet Labs’ eye in the sky: India is a medieval knight in the age of modern warfare

Satellite pictures of the Galwan valley region shared by US-based Planet Labs exposed China backtracking on the agreement with India to disengage. While the images did help India foster its case in shaping global opinion, it also exposes the country’s unpreparedness in advanced technologies. The episode underlines the urgent need to nurture companies in satellite imaging and space technology.

[[^message]]

Result

[[/message]] [[#message]]

[[message]]

[[/message]]