We like momentum in today’s economic environment, even if its performance could be prone to short-lived reversals.
The momentum style factor — stocks that are trending higher in price — has been on a tear in 2017. Sustained above-trend economic growth and solid earnings prospects could help extend the gains, but it may be a bumpy ride.
Momentum has historically outrun the broader market, but with periodic sharp drops. The biggest dips in its relative performance have coincided with recessions and financial crises. Our research shows momentum tends to perform best during steady economic expansions — and we see this cycle having ample room to run.
Read the three key points of BlackRock's weekly commentary below, or
view the entire three-page weekly investment commentary now.
Key Points:
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We see the momentum equity style factor outperforming, backed by a sustained economic expansion.
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Oil prices entered a bear market on concerns about higher than-anticipated global supply.
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This week’s U.S. and eurozone inflation data could shed some light on the direction of central bank policies.
Review the complete commentary, or read about
BlackRock's Q2 2017 Global Investing Outlook.
To learn more about BlackRock and other Money Managers, give us a call at 1-800-541-7774 or contact us here to speak with a knowledgeable Investor Consultant.