Bloomberg
"Recovery in Momentum Stocks May Be Just as Ominous as the Collapse"
Cormac Mullen
,
10/11/2019, 3:20:48 AM
CAPITAL RESEARCH INC
The September sell-off in U.S. momentum stocks is well on the way to being repaired, but the speed of the rebound is a warning sign of more volatility ahead, according to Sundial Capital Research Inc.
Their recent recovery is one of the largest, quickest reversals in history, said Sundial founder Jason Goepfert in a note to clients Thursday. While similar moves in the past have preceded large long-term gains, shorter-term returns suffered from an increase in volatility, with some big losses, he said.