Do trading rules based upon winners and losers work across markets? Evidence from the Pacific Basin and U.S. markets.

SelectedWorks Author Profiles:

Gary A. Patterson

Document Type


Publication Date


Date Issued

January 1999

Date Available

August 2014




Numerous studies have examined trading strategies that seek to exploit price reversal behaviors in the U.S. stock market. The evidence to date suggests that taking a long position in U.S. stocks with negative returns (losers) and a short position in stocks that have positive returns (winners) may yield large profits. This article expands this line of research by applying these trading rules to Pacific Basin markets. Striking differences in the pattern of portfolio returns between most Pacific Basin markets and those in the U.S. market are found. This article demonstrates that profitable trading strategies developed in the U.S. may not be successfully transferred to other national markets (JEL C 1, F3, and Gl).


Citation only. Full-text article is available through licensed access provided by the publisher. Published in Multinational Financial Journal, 3(1), 41-70. Members of the USF System may access the full-text of the article through the authenticated link provided.




Multinational Finance Society

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.