ANTS

The Downside of Momentum-Based Investing

Kevin, as a holder of a few of these I appreciate your article.

Its a tough world. Had I valued these stocks using normal metrics and listening to broker advice, I would never have bought them. They were always too expensive. But as each day passed, earnings were upgraded and upgraded again until somehow it appeared that the market was the lead indicator and the analysts were just catching up to the true story.

At some point in time, the implied growth rate in the valuation seemed too much, and maybe at that time, the tables turned.

If I have a secret to share, its that I scan the index for these opportunities and I invest in them on a portfolio basis, not as individual picks, nor on the advice of Cramer. So I was lucky (maybe skillful) that my momentum analysis found them early. I must say, I don't know what to do now.