Momentum Strategies

Abstract As time went by, the or so normal investing instruments atomic number 18 railway line and bring together（ex. Corporate bond、 G everyplacenment exchequer Bond、 exchequer bills）. in any case that, those instruments are more acquainted(predicate) by most investors. Because of these reasons, on that point are many kinds of investment strategies that be invented in the stock market. For example, contrarian strategies and impulse strategies are the most familiar strategies that we know. DeBondt and Thaler(1985,1987) proposed that stock prices to a fault oerreact to information and suggesting that contrarian strategies to strive abnormal harvest. That means foul losers and deal winners. Jegadeesh and Titman(1993) provided nervous impulse strategies to reach out abnormal backtrack in the stock market. They utilise 16 different methods of momentum strategies to test if these methods could get abnormal return. They buy stocks with juicy returns over the earlier 3 to 12 months and sell stocks with piteous returns over the same period. We could find that the investors could get laid-back returns in the neighboring 3 to 6 months if the stocks were choose with high returns over the previous 3 to 6 months. In contrast, if the instruction execution of stocks were poor in the past, these stocks may more worse in the future. Besides that, the result of Titmans paper shows that the return of short-selling is much disdain than the return of buy strategies. In most cases, the return of short-selling is contradict for investors. In addition, Balvers(2001) used the same method that Jegadeesh(1993) has eer used to analysis, and the difference is the sample period. However, the results are similar to Jegadeeshs conclusions. Whether momentum strategies are useful in short-selling stocks, we would like to cover these issues in this paper. What kinds of relationship between contrarian strategies and momentum strategies? Kaul and Nimalendran(1990), Jegadeesh and T! itman(1995) tried to justify the relapsing of stock market through bid-ask spread, but the...If you indirect take to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay