Updated: May 22, 2020
Wes Gray, P.h.D. of Alpha Architect comes on to share his thoughts on portfolio construction and the application of value and momentum in security selection.
Topics We Discuss:
Momentum Investing vs Growth Investing
Why Momentum is the premier anomaly
Why Momentum is not widely accepted given its historical outperformance
Is momentum too dangerous for the average investor?
The Poker Analogy
The seasonality of momentum
My favorite Wes interview quote: "Compound your face off!"
My Favorite Quote From Wes's Book 'Quantitative Momentum':
“Remarkably, while modern-day academics refocused on the concepts of stock selection momentum, many practitioners continued to be stuck in a time warp. The reasons for this regressive behavior are likely related to the practitioner training pipeline. The academics, who train all the MBAs that go on to manage portfolios, were still being taught portfolio mathematics so they could solve asset allocation decisions. Stock picking training was a waste of time because it was a sucker's game under a strict interpretation of the EMH.”
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