FYI: For decades, the most important F word in investing was “fundamentals.” But as the industry transitions away from active stock-picking by humans to more mechanized approaches, a new F word has emerged: “factors.”
In factor investing, securities are chosen by computer systems based on attributes, or factors, that are associated with higher returns. Value and quality are factors, but so are momentum and low volatility.
Regards,
Ted
http://www.cetusnews.com/business/BlackRock’s-Factor-Guru-Favors-Momentum-Stocks.rJZFb0Glf.html
