Welcome to Momentum Monday.
There was a disconnect between Australian and US Markets last week, as their Tech Heavy index out performed our Mining Heavy Index. From time to time this will occur but it doesn't mean the narrative is any different. As a Momentum Investor you will understand that there are times when certain sectors are hot, and times when they are not.
Therefore this raises the question of diversification, and if you ask me from a Fundamental perspective, I say it is essential. If you ask me from a Momentum perspective I say there in no need to diversify, PROVIDED you have your exit strategy defined for every stock. No questions. It is easy at the moment to see the stocks that are not going up relative to a market at all time highs, therefore keep your trigger finger in your pocket, and wait for the price to show you the right signs.
As the great Quality Investor Warren Buffett said, “The stock market is a device for transferring money from the impatient to the patient” - this is just as true when it comes to Momentum investing. Ours is not to pick tops and bottoms. Rather it is the chunky bit in between and hopefully it is headed North East rather than South East.
Interesting links
This week on Weekend Watchlist run in conjunction with Shares for Beginners, we cover stock with a high visual presence in REA - REA Group. Listen here to the replay
We have run the Friday Lunch ‘n Learn session for members. Click here to access the replay
We have also launched our Investor Mastermind Series with the first in the hot seat being Roger Montgomery from Montgomery Investment Group to be held this week. Book your place here.
Our “Empower Others” referral program has been updated and it offers the biggest discount we have available anywhere (Even better than the EOFY offer). To Learn read more here if you are interested in sharing this tool with other like minded investors
For any external commentary we make to the broader market, follow us on Social Media Facebook Linkedin Instagram or X (formerly Twitter)
This week’s content is as follows:
Broader market sentiment
Member corner
Stocks…
