Wall Street's momentum is undeniably bullish as the fourth quarter rolls on, with the S&P 500 Index ($SPX) and Dow Jones Industrial Average ($DOWI) setting new record highs. With earnings season off to a robust start and the Federal Reserve steering toward a soft landing, analysts at Jefferies recommend betting on the momentum trade to stay strong into year-end.
Momentum investing banks on the idea that rising stocks tend to keep climbing while falling ones continue to drop. In a recent note, Jefferies U.S. small-mid cap strategist Steven DeSanctis said “momentum has been red-hot and tends to keep its momentum heading into the last few months of a year.”
