Wall Street on Edge With Momentum Trade Wrapping Up Historic Quarter
- PGIM quant warns on inflation threat to the momentum strategy
- A rotation into riskier laggards like small caps may be nigh
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The simplest stock strategy on Wall Street — beloved by the smartest minds in finance and more — just closed out its best quarter in more than two decades.
Now a cohort of investment pros from JPMorgan Chase & Co. to PGIM Quantitative Solutions are ramping up warnings that the trend-chasing trade looks ripe for a crash.