Research favors stocks hitting new highs

Aaron Pressman

Hot on the heels of the sale of Wallstrip, a video blog that focuses on stocks hitting all-time highs, comes a strong academic endorsement of just such a strategy. Thanks to the sharp folks over at CXO Advisory Group's blog, you can read about a detailed study (PDF file) of momentum strategies. Bottom line: a strategy premised on buying stocks hitting 52-week highs is a big winner, producing returns double that of other momentum strategies after adjusting for risk.

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