Disposable personal income (DPI) and personal consumption expenditures (PCE) gained 0.2% and 0.4%, respectively, vs. flat performance in June, the Bureau of Economic Analysis reported today. That’s encouraging, as these things go in the summer of 2010. But as usual, the fine print leaves room for debate.
Daily Archives: August 30, 2010
MOMENTUM PROFILE FOR THE MAJOR ASSET CLASSES
Momentum isn’t everything, but it’s hardly chopped liver. You could spend the next several months reviewing the literature published over the past two decades that make a case for showing a little respect for price momentum, or the tendency of prices to continue moving in the same direction relative to recent history. Should you focus exclusively on momentum for managing portfolios? No, of course not. But neither should you ignore it.