‘Full-Blown Panic Unwind’ in Momentum Trade Is Signaling a Nadir

Momentum stocks are suffering one of the steepest drawdowns in years after a 'trifecta' of headwinds, and some equity pros say the washout may be nearing a breaking point. Expect elevated volatility and increased risk-off positioning that could pressure momentum-heavy benchmarks and related ETFs in the near term.

Analysis

Momentum stocks are suffering one of the steepest drawdowns in years after a 'trifecta' of headwinds, and some equity pros say the washout may be nearing a breaking point. Expect elevated volatility and increased risk-off positioning that could pressure momentum-heavy benchmarks and related ETFs in the near term.