November 23, 2023: The 2nd SBS Brown Bag Seminar hosted Dr. Mohsin Sadaqat, the Assistant Professor and Head of the Finance Lab, shared valuable insights on an easily implementable stop-loss momentum strategy in emerging stock markets. Dr. Sadaqat highlighted the global application of this strategy, emphasizing its unique ability to yield returns with lower risk. He underlined the importance of a zero-cost approach, strategically navigating long positions in past winners and short positions in past losers.
A key takeaway was Dr. Sadaqat's advice on risk mitigation—a swift sale of stocks to minimize losses. However, he also acknowledged the challenges of applying momentum strategies in emerging markets, discussing construction, crashes, and the strategy's limitations in less volatile markets.
© Institute of Business Administration (IBA) Karachi. All Rights Reserved.