Odd Lots Newsletter: The SpaceX IPO Is the Perfect Embodiment of Markets
The unbearable momentum of momentum
- Multiple markets are in melt-up – and for fifteen years, momentum has trumped mean reversion
- This feels instinctively unhealthy, and rightly so: crowding and herding really are at extremes across asset classes
- But it is not the sell signal it seems – neither for indices, nor for Momentum itself
- What crowding changes is the tail, not the trend: the real risk is a correlation spike
