Working with financial advisors is my privilege.  Taking care of clients is theirs.

A friend asked me recently, “In the investment world, what is momentum?”  I explained that the momentum we like is like a Led Zeppelin song, “Stairway to Heaven,” often reaching heights previously unimaginable.  But momentum goes in both directions in the investment world, so the momentum we don’t like is more like an AC/DC song, “Highway to Hell,” often swift and painful.  Momentum in financial markets goes in both directions.  My friend then asked an important question, “I think I get it but how do you know when it starts and when it ends?” 

We know the simple calculation is: (momentum = mass x velocity).  Warren Buffet famously and correctly said, “In the short run, the market is a voting machine but in the long run, it’s a weighing machine.”  Momentum is the short run part of this quote, and a viable option for investors.  Identifying momentum early is primarily a science over an art.  Momentum investing typically involves a set of rules based on technical indicators that determine market entry and exit points for securities.  Basically, momentum investing is a complicated math problem that doesn’t necessarily identify the “day” it begins, but often identifies if it will continue, and more importantly, when it may end.

For an update on momentum investing, my colleague, Chris Verrone, Head of Technical and Macro Research has a video update on our macro momentum ETF, SAMM. 

Strategas ETFS - Strategas Macro Momentum Fund Update: Performance, Positioning, and What’s Working

This communication was prepared by Strategas (“we,” “us,” or “our”), a brand that offers investment advisory services through Strategas Asset Management, LLC, an SEC Registered Investment Adviser, and provides research to institutional investors through Strategas Securities, LLC, a broker-dealer and FINRA member firm and an SEC Registered Investment Adviser. Information regarding market or economic trends, or the factors influencing historical or future performance, reflects the opinions of management as of the date of this communication, and are subject to change. This communication is provided for informational purposes only and should not be construed as an offer, recommendation, nor solicitation to buy or sell any specific security, strategy, or investment product. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. This communication does not constitute, nor should it be regarded as, investment research or a research report or securities recommendation and it does not provide information reasonably sufficient upon which to base an investment decision. This is not a complete analysis of every material fact regarding any company, industry, or security. Additional analysis would be required to make an investment decision. This communication is not based on the investment objectives, strategies, goals, financial circumstances, needs or risk tolerance of any particular client and is not presented as suitable to any other particular client. Past performance does not guarantee future results. All investments carry some level of risk, including loss of principal.

Strategas Asset Management, LLC and Strategas Securities, LLC are affiliated with Robert W. Baird & Co. Incorporated ("Baird"), a broker-dealer and FINRA member firm, and an SEC Registered Investment Adviser, although the firms conduct separate and distinct businesses.