2021 continues to be a superb year for U.S. stocks, while the same cannot be said for China.
S&P 500 has gone up 19% since the start of 2021 up to the time of this writing.
The market trend has been great for momentum trading.
For those who are not familiar with momentum trading, you can think of it as the polar opposite of value investing. In value investing, you buy low and sell high, while in momentum trading, you keep in mind that low can go lower. Momentum involves trading in the direction of the trend, and that means buying high and selling higher.
Both types of trading works but in different timeframes. In value investing, the price can take time to rebound, often it takes years, but the rewards are huge. On the other hand, momentum trading usually takes a shorter time to rebound, but the trend would likely die