Alarm Bells Sounding Over Gigantic Run-Up in Momentum Stocks
- Morgan Stanley, JPMorgan say trade could be getting stretched
- Rotation between stock winners/laggards becoming more frequent
This article is for subscribers only.
One of the most lucrative strategies in stock investing this year may be heading for a pause.
Investors betting on momentum, or the continuation of existing market trends, have made a killing thus far in 2017, with indexes tracking the strategy in the U.S. and Europe at or near record highs. Now, firms including Morgan Stanley and JPMorgan Chase & Co. are predicting that the trade -- akin to piling into technology stocks, this year’s top stock-market performers -- could be getting stretched.