IDNStudy.com, ang perpektong platform para magtanong at makakuha ng maaasahang mga sagot. Alamin ang mga maaasahang sagot sa iyong mga tanong mula sa aming malawak na kaalaman sa mga eksperto.
Answer:
Should a value investor sell an undervalued stock simply because momentum investors have started to buy?
No. Absolutely not. It is good when momentum investors start to buy. This means the stock has momentum! It is now going up!
Momentum is actually a value investors best friend. For a start, it helps you avoid value traps, stocks that have value relative to current earnings but have poor future prospects. The presence of positive momentum is the market's way of telling you this is unlikely to be the case.
Less appreciated is the fact that one of the ways value stocks make money is when their price appreciates to the point where they are no longer value, they have migrated into growth. The only way this happens is when the price goes up and this inevitably attracts momentum investors. I wrote a blog post on the academic research behind this recently.
Investing should be about making money, not choosing a side in an argument. Don't be a "value investor" or a "momentum investor". Be a successful investor.
Explanation:
Hope it help!!
pa BRAINLEST po‽