MSCI's global momentum gauge has outperformed the MSCI All Country World Index by 17 percentage points since late March 2026-the strongest two-month streak since Bloomberg began tracking the data in 1991.
The engine behind this surge? AI stocks and the stampeding herd of investors chasing them. Momentum investing, which buys winners and rides them higher, is currently printing money at a rate unseen in over three decades.
Strategist Hao Hong projects momentum will continue a few more months, albeit with high volatility. Jun Bei Liu warns of bubbles forming as investors ignore macroeconomic developments while chasing the AI narrative.
For crypto investors, the takeaway is clear: monitor equity volatility as a leading indicator. A sharp reversal in MSCI momentum performance, especially if triggered by macro fundamentals, would signal a shift in broader risk appetite.