Opinions
Mike S. Newton, CIM FCSI
First Asset MorningStar Canada Momentum Index
WXM-T
COMMENT
Jul 03, 2015
$15.890
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
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RISKY
Momentum breaks every rule of efficient markets, but it is a phenomenon. High returns means higher risk. The stocks that have trended up the most are the most likely to give back their gains if there's a sudden market reversal. Wonderful factor, but has a tendency to fall out of bed. One to grab as we're coming out of a bottom, which may have already happened. Not the mirror image of the value fund FXM.
E.T.F.'s
Has owned this off and on for some time. It allows you to own 30 names in the Canadian space that are exhibiting price momentum. It looks at names that are not only doing well on an earnings surprise level, but the price is also moving in the right direction. They rebalance it to kick names out to make room for names that are replacing them. As a warning, if this had existed in 2008, you probably would have been down 40%.