Stock Rotation Deflated These Momentum-Heavy Funds
These funds rode momentum stocks higher, but some didn’t pivot with the value rally.
Prior to the stock market rotation out of pricey-fast growing stocks and into value names that began in October, one of the biggest factors driving top performance was momentum. As we noted in October: “Stocks that were going up kept going up, and the laggards kept lagging, leading to a winning streak that is unprecedented in the past decade.”
But that changed in a hurry. Battered energy stocks have surged and big tech names have stumbled.
Benjamin Slupecki does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.