Will Trend Be a Friend Once Again?

| Multi Asset

We think that the short and medium-term macro situation we are expecting opens the door to an amplification of recently observed trades. This chart shows how the Covid-19 crisis at the start of 2020 led Momentum to outperform while anything Trend, Carry or Value-related collapsed. Trend has recovered to some extent while Carry and Value are still clearly lagging in their feeble recovery. Over the next quarter we expect this factor/style rotation to keep unfolding.


Will Trend Be a Friend Once Again?

Reading note: Trend here stands for “cross-asset trend following”, Momentum for “equity momentum factor”, Carry is an average across different types of carry strategies (forex, credit, volatility and commodities) and Value stands for “equity value factor”.

Source: Bloomberg, Unigestion. Data as at 31 March 2021.

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