Contrarian and momentum trading: a review of the literature
Abstract
Purpose
The purpose of this paper is to critically review the literature on contrarian and momentum trading strategies and identify areas for future research.
Design/methodology/approach
Critical review and discussion of the literature.
Findings
The extant literature is dynamic and is typified by a number of open questions.
Research limitations/implications
The open questions in the literature relate mainly to the driving forces of investment performance, and the role of risk and asset pricing as well as behavioral human traits. The literature is vast and therefore difficult to classify, cover and discuss.
Practical implications
The paper indicates the possible need for: the development of different asset pricing models and propositions that can have practical implications at a more international context.
Originality/value
The paper provides a critical review of the literature and identifies open issues for future research.
Keywords
Citation
C. Galariotis, E. (2014), "Contrarian and momentum trading: a review of the literature", Review of Behavioral Finance, Vol. 6 No. 1, pp. 63-82. https://doi.org/10.1108/RBF-12-2013-0043
Publisher
:Emerald Group Publishing Limited
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