Insights
August 12, 2026
High-beta momentum suffered a sharp reversal in July, erasing its year-to-date gains and marking one of the largest post-GFC momentum drawdowns on record.
Periods of extreme momentum leadership have historically been difficult to sustain, particularly when valuations, positioning, and investor expectations become increasingly stretched. The speed of July’s unwind highlights how quickly market leadership can change when crowded trades begin to reverse.
