Momentum Funds Masquerade as Low Volatility

The video discusses the shift in momentum strategies from tech stocks to more defensive sectors like healthcare and utilities, making them resemble low volatility funds. This shift is attributed to market changes, particularly a sharp decline in the fourth quarter. The correlation between momentum and low volatility is currently very strong. Momentum is explained as a strategy that follows trends, buying stocks that perform well and expunging those that don't.

What is the current relationship between low volatility and momentum strategies?

How does momentum strategy react to stocks that are performing poorly?