Momentum Investing: Winners Keep Winning

What the Latest Research Reveals

If you’ve ever wondered why some stocks keep climbing while others just fade away, this note is for you. A new October 2025 paper by Guido Baltussen and his team takes a hard look at “momentum investing” – the idea that recent winners tend to keep winning and laggards often stay weak. They run the numbers on 150 years of data and show it’s not a fluke, but a durable return driver that has evolved over time. I’ve boiled their work down into simple, practical language. Let’s walk through it step by step.

Think of physics: a moving object keeps moving until an opposing force stops it. Markets show a parallel assets that have been rising (or sliding) often continue in the same direction for a while. That core philosophy stayed simple: recent winners tend to keep working, and recent laggards often stay under pressure.

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