Definitions for "Momentum Investing"
A simple investment strategy that assumes price will continue any strong current trends.... more on: Momentum Investing
A momentum investor is an investor who buys a security with an accelerating price; i.e. an investor who buys into a rapidly increasing price. Momentum investors fall under an investment style called growth investing; a style which can be contrasted with value investing, where the investor is looking for undervalued stocks.
An investment style that is currently popular among investors. It involves targeting companies with rapidly growing earnings - ie a history of positive quarterly earning surprises. The strategy inevitably involves buying stocks with extremely high P/E ratios and carries a great deal of risk. Momentum investing is favored by aggressive managers of aggressive growth and capital appreciation mutual funds.