Archive Category: Infinite Momentum Alert Archive

It’s counterintuitive, but true… “Beating the market” is as much about doing less poorly in a “down market” as it is about doing better than it does in an “up market.” Young-buck alpha males always get this wrong…

Let’s kick off the weekend with some good news … In case you missed it, for the first time in the history of Infinite Momentum Alert, we took profits ahead of our regular monthly portfolio reshuffle. I issued a trade alert to sell half of our Oil States International (OIS) position. We walked away with returns of 55% on half our trade in just three weeks… and this trading cycle isn’t over.

I’m going to start today’s update with some good news. While tech stocks are down for the year… and the S&P 500 Index is barely flat… our Infinite Momentum strategy is making real money. Since our February 6 portfolio reshuffle, our positions are up by an average of 6.3%. Meanwhile, the vaunted “Magnificent Seven” – those mega-cap tech stocks that couldn’t lose – are down about half a percent.

Today, we’ll do what longtime readers know we do every four weeks here in Infinite Momentum Alert… We’ll review the performance of our portfolios over the prior four weeks. This analysis covers the period from January 9 through last Friday, February 6.

I might sound like your grandfather when I say this, but it stands to reason that buying something for less than what it’s worth is a good way to make money! That’s the gist of value investing… and it works. Even today, in a FOMO market where the only “risk” most investors seem to appreciate is the risk of missing out on the action. In case you missed it amidst all the AI hype, a subtle shift recently happened in the stock market. Value stocks… quietly and without fanfare… started to outperform growth stocks about three months ago. The iShares S&P 500 Value ETF (IVE) is up about 4% since the beginning of November.