Momentum factor investing global commodities are surprising

Global commodities are surprising momentum traders, as copper prices hold a steady upward run. Momentum factor investing signals put copper’s monthly z-score at +2.2, implying market sentiment is growing increasingly bullish amidst supply constraints. Analysts say what buyers do next hinges on how carmakers set prices in the months ahead, as they contend not only with the end of the tax credit but also tariffs on foreign cars and certain car parts that Trump introduced this spring. Both value and momentum factors are seen as cyclical, performing well in rising markets but poorly during declines. Amid economic uncertainty caused by the U.S.’s trade policy, investors sought safe-haven assets, leading to a shift toward other developed economies, which supported these factors' performance. Additionally, announcements of economic actions, such as European nations' willingness to boost defense spending , further increased the appeal of investing in foreign equities. Conversely, low volatility and quality are considered defensive, performing best during economic downturns. Historical pattern recognition in momentum factor investing shows U.S. clean energy ETFs are entering a second leg higher. Fund inflows have accelerated 22% over the past two weeks, fueling continuation signals in MACD and ATR metrics.