Market’s Vaccine Euphoria Was Bad News for Momentum Funds

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For some trend-following investors, the recent abrupt market reversal inflicted pain

Caution gave way to euphoria in financial markets when Pfizer Inc. and BioNTech SE said their coronavirus vaccine was more than 90% effective on Nov. 9.

Shares of companies that have suffered in the pandemic leapt, as did government-bond yields and energy prices—a pattern that repeated with the arrival of promising results for Moderna Inc.’s vaccine Monday.

 

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