What is Momentum?
Momentum is an investment strategy that buys or sells based on recent price trends, buying the assets rising in value and selling those that are losing value
By doing so momentum strategy (also called trend-following) seeks to achieve higher risk-adjusted returns than simply buying and holding assets. This is an 'anomaly' since such strategies must not exist in an efficient market
There are decades of evidence confirming 'momentum' factor, and various explanations for its existence such as prices' impact on sentiment and behaviour