Valuenomics Research

While some market players are concerned about growing stock price volatility, momentum traders have profited handsomely from the mood swings over the previous year and a half.  Investing in long-term momentum (5 years or 60 months) and short-term momentum (1 to 3 months) might lead to return reversal in the future. Interestingly in the medium term (6 to 12 months) actually exhibits a continuation of returns explaining the logic if in the medium-term growth trends the stock shows a persistently doing will show continuity in its growth trend or the period of future time and same way if it is continuously performing poorly it will continue to perform poorly as well in the long term. But in the current market situation of high volatility, investors can’t bet on continuation. Thus this has changed the strategies and behavior of investors have changed.  Momentum Investors are tracking the short term, i.e., 1 to 3 months, to check on the returns, and so the portfolio has to be constantly reba

     stockmaniacs.net      As students of investing, many of us have encountered questions in life where we did not know the correct answer; however, we were sure which answer wasn't the correct one. Short sellers in the market make use of this rationale while choosing their investment avenues. Essentially, short selling is betting against the odds of a firm being successful in the future. It is a process whereby the investor sells borrowed stocks in the market in the hope of repurchasing them at a lower price, benefiting from the difference between the purchase price and the selling price. The concept of selling something you don't own might seem absurd, but savvy investors can use this skill to gain hefty profits. From an investor's perspective, short selling has an array of benefits to offer. The first and most apparent one is that it provides the opportunity to make money not only when a stock goes up but also when it goes down. Furthermore, it can be used to hedge yo

 In the context of mutual funds, too, investors have been pondering over the question of the persistence of results since forever. Be it any field, consistency of results is something that can be found in any prosperous venture. As it is famously said, persistence is key to success. Let's start by understanding the importance of uniformity of returns. Investors often get misguided by investing in a mutual fund seeing its highs on a particular day, or vice-versa. This practice does not paint an accurate picture of the performance of the mutual fund. A fund must be analyzed to see if it can sustain itself in a dynamic environment.  It must be ensured that it earns returns higher than the market at all times and not just a point in time. Now the question arises that what defines this consistency? A mutual fund can be classified as a stable one when its performance is better than the benchmark at any given time. As per SEBI's guidelines, every fund house devices its benchmark i