Chart Insights
The Return of Momentum Volatility
After a relatively calm stretch post-Covid, large moves in momentum have become more frequent in 2026.
Large momentum swings are occurring more often, highlighting a more volatile environment for factor leadership.
Large daily moves in the U.S. Momentum Index have become more frequent, with 2026 on pace for the highest count since the Great Financial Crisis.
Periods of elevated momentum volatility often reflect faster rotations in market leadership and sharper reactions to changing expectations.
The data reinforces the importance of risk control and diversification, particularly when factor trends become less stable.
Number of Days with +/- 1.5% Move (U.S. Momentum Index)
Note: 2026 annualized as of 7/24/2026.
Source: Factset, Aristotle Capital Management.
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