Neither strategy is inherently better than the other; each has its advantages depending on market conditions and individual investor preferences. Value investing appeals to those with a long-term, conservative approach. It is also a more forgiving strategy for beginner or less active investors since the longer general time frame allows prices to rebound before major goals like retirement. Momentum investing is more suited to those comfortable with higher risk and short-term market movements. While this strategy is riskier compared to value investing, momentum investors may be able to take profits more quickly — ideal if you’re investing for a shorter-term goal, like buying a new car.
As always, consider your risk tolerance, investment time frame, and goals when choosing the right strategy for you. Consulting a financial advisor may also help you determine which method aligns with your objectives.