Momentum Strategies

Abstract As time went by, the or so pop investing instruments atomic number 18 ancestry and constipate（ex. Corporate bond、 G everywherenment exchequer Bond、 exchequer bills）. similarly that, those instruments are more acquainted(predicate) by most investors. Because of these reasons, thither are many kinds of investment strategies that be invented in the stock market. For example, contrarian strategies and nerve impulse strategies are the most familiar strategies that we know. DeBondt and Thaler(1985,1987) proposed that stock prices too everyplacereact to information and suggesting that contrarian strategies to strive abnormal harvest. That means spoil losers and deal winners. Jegadeesh and Titman(1993) provided whim strategies to reach out abnormal government issue in the stock market. They utilize 16 different methods of momentum strategies to test if these methods could get abnormal return. They buy stocks with juicy returns over th e preceding(prenominal) 3 to 12 months and sell stocks with unfortunate returns over the same period. We could find that the investors could get laid-back returns in the adjacent 3 to 6 months if the stocks were choose with high returns over the previous 3 to 6 months. In contrast, if the instruction execution of stocks were poor in the past, these stocks may more worse in the future. Besides that, the result of Titmans paper shows that the return of short-selling is much bring low than the return of buy strategies. In most cases, the return of short-selling is negatively charged for investors. In addition, Balvers(2001) used the same method that Jegadeesh(1993) has eer used to analysis, and the difference is the sample period. However, the results are similar to Jegadeeshs conclusions. Whether momentum strategies are useful in short-selling stocks, we would like to cover these issues in this paper. What kinds of relationship between contrarian strategies and momentum s trategies? Kaul and Nimalendran(1990), Jegad! eesh and Titman(1995) tried to justify the volte-face of stock market through bid-ask spread, but the...If you indirect supplicate to get a full essay, order it on our website: BestEssayCheap.com

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