Momentum Stocks Have Never Outperformed Like This Before

NewsletterMarkets DailyMomentum Stocks Have Never Outperformed Like This BeforeBuying the market’s winners is paying off — for now.FacebookXLinkedInEmailLinkGiftExpandPhotographer: Michael Nagle/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Phil SerafinoMay 26, 2026 at 9:56 AM UTCBookmarkSaveLock This article is for subscribers only.One of the most popular equity trading strategies — buying stocks that are already going up — is producing its best returns in decades. It’s down to the AI mania as investors keep pouring cash into the next digital revolution. (Even the trainers who teach Wall Street bankers how to use AI tools are now charging $25,000 a day.) MSCI’s global gauge of stocks with upward momentum has beaten the MSCI All Country World Index by 17 percentage points since the end of March, on track for its strongest two-month outperformance on record, in data compiled by Bloomberg back to 1991.Bulls say AI mania can continue luring money into the market’s biggest winners. The risk, though, is that the longer investors crowd into the same stocks, the more exposed markets are to a sudden reversal if hot inflation causes the Fed to tighten monetary policy or if earnings weaken.