- My Monsters of Momentum screen has delivered a fivefold return over 11 years
- A strong 12-month performance despite whipsawing momentum trends
- 25 new monsters unleashed for the next 12 months
Momentum investors have had a whipsaw year and a little bit. Momentum works by hopping on hot trends and hoping they will continue.
This time a year ago a new trend had just arrived in town. The so-called 'value rotation' trade, or more colloquially known as a 'dash for trash'. This is typical when signs of an economic recovery emerge. Those low quality and heavily indebted businesses that have seen shares sink to near-death valuations rapidly re-rate. It was a raft of vaccine breakthroughs last November that was the event that set the 'dash' off.