{"id":19208,"date":"2024-01-11T03:13:29","date_gmt":"2024-01-10T21:43:29","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=19208"},"modified":"2025-04-05T15:58:49","modified_gmt":"2025-04-05T10:28:49","slug":"momentum-investing","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/momentum-investing\/","title":{"rendered":"What is Momentum investing?"},"content":{"rendered":"<h2>About Momentum investing<\/h2>\n<ul>\n<li>It refers to a style of investing wherein\u00a0investors purchase assets such as stocks or bonds that are\u00a0consistently rising in price while selling assets\u00a0whose prices are falling.<\/li>\n<li>Momentum investors\u00a0buy assets with\u00a0rising prices in the hope that the upward price momentum of these assets would continue, thus allowing them to sell these assets at higher prices in the future to make profits.<\/li>\n<li>It is based on the philosophy that there can be discernible trends in asset prices and that these trends tend to persist over time.<\/li>\n<li>The persistence of such trends gives investors an opportunity to recognise and participate in them early enough to make significant profits from their investments.<\/li>\n<li>Similarly, they sell assets that are falling in price expecting the fall in prices to continue for some time.<\/li>\n<li>Momentum investors generally\u00a0do not conduct a deep analysis of the fundamental or intrinsic value of the assets in which they invest their money.<\/li>\n<li>They invest purely based on whether the price of an asset is showing a strong trend, either upward or downward, that they can ride on.<\/li>\n<li>The \u201cbuy high, sell higher\u201d philosophy of momentum investing\u00a0is in stark contrast to the traditional \u201cbuy low, sell high\u201d advice given to investors.<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is &#8216;Stocks&#8217;?<\/h3>\n<p>A stock is a general term used to describe the ownership certificates of any company. A share, on the other hand, refers to the stock certificate of a particular company. Holding a particular company&#8217;s share makes you a shareholder.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.thehindu.com\/specials\/text-and-context\/the-logic-behind-momentum-investing\/article67724617.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>The logic behind momentum investing<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Momentum investing refers to a style of investing wherein investors purchase assets such as stocks or bonds that are consistently rising in price while selling assets whose prices are falling.<\/p>\n","protected":false},"author":5,"featured_media":19209,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-19208","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=19208"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19208\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/19209"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=19208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=19208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=19208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}