Bloomberg Surveillance · Friday, September 4, 2026
There has been a multi-standard deviation shift in the momentum factor, with a significant move away from previous trends. This has led to increased interest in the software sector, with investors viewing it as potentially undervalued after previous downturns.
“Huge shift. I mean, multi-standard deviation shift in what momentum has done. You know, momentum is the thing that has been working. Winners have been winning. And we really had a drawdown in that.”
“You know, I can tell you when we just look at our trading desk level, a lot more interest in something like the software sector. So it's almost anti-momentum, right? Like, Exactly. February of this year, you know, we couldn't stop talking about saspocalypse and pencils down. No one wants to talk about anything with existential terminal value. Now people are like, hey, that software is looking pretty good. Let's sniff at that.”