Insight
Trend Setters: How Time-Series Momentum Works Across Market Cycles
Trend strategies may provide a consistent and diversifying source of return across market conditions, including periods of high inflation. Read about how we enhance our trend strategy with machine-learning techniques.
Authors
- Eddie Cheng, CFA
- Chenfei Ma, CFA
-
Sophie Careford, CFA
5/12/2023
14 min read
Topic
Multi-Asset
Key takeaways
- Trend following, or time-series momentum, is a rules-based investment strategy that uses long and short positions to generate returns.
- It has provided a consistent and diversifying source of return across varying market conditions, even during periods of high inflation.
- We enhance the risk-adjusted return profile of our trend strategy using machine-learning techniques.