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Journal of Banking & Finance Vol. 97 2018

Time-series momentum in nearly 100 years of stock returns

Bryan Lim1; Jia‐Guo Wang2; Yaqiong Yao2

1 The University of Melbourne · 2 Lancaster University

open access

Abstract

We document strong time-series momentum effects in individual stocks in the US markets from 1927 to 2017. Time-series momentum is not specific to sub-periods, firm sizes, formation- and holding-period lengths, or geographic markets. The effects persist after controlling for standard risk factors. Time-series momentum effects are conditional on the market state, the information discreteness of the constituent stocks and investor sentiment. We propose two alternative implementations, revised time-series momentum and dual momentum, which generate even higher profits than standard time-series momentum.

DOI
10.1016/j.jbankfin.2018.10.010
Volume
97
Pages
283-296
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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