FA Center: These stocks could get a big kick from a market melt-up

Momentum strategies are alive and well. Their resurrection in 2017 came not a moment too soon, as many financial advisers in recent years had been on the verge of declaring momentum to be dead. That’s because the approach, which historically had been one of the most profitable, had turned in a decade or more of mediocre returns (or worse).

Many wondered if momentum had become yet another casualty of an efficient market, in which once-profitable strategies stop working as more and more investors started to follow them.

The doubters were converted in 2017. Consider iShares Edge MSCI USA Momentum Factor ETF MTUM, -2.30% which gained 37.6% last year, nearly double the 21.8% return of the S&P 500 SPX, -2.12% .

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