Archive Category: Infinite Momentum Alert Archive

Last week, I wrote that the tech trade is shifting again, noting that – after a multimonth stretch of underperformance – the “Magnificent Seven” were back from the dead and leading the market higher. It may surprise you to hear me say this, given that I’ve been trashing the Mag 7 all year. But I’m thrilled to see the world’s seven largest tech stocks back in the game. As I wrote last week, as long as the Mag 7 remain healthy and strong, the AI bull market has legs to run higher.

I spent some time in last week’s Performance Update discussing a shift that seems to be underway in the tech sector … and I promised to go into more detail this week. Here’s how I teed up this discussion:

If you’re just here for the headline numbers … I’m pleased to report our Infinite Momentum portfolio gained 3.4% last month compared with a negative 1.9% return from the four major benchmark indexes. That’s great – your money is continuing to compound at a rate well above the market’s! But there’s a bigger shift at play within the tech space that’s worth looking at more closely …

When I launched Infinite Momentum, I put a lot of thought into naming our strategy. Longtime readers know I’ve always compared the model to a relay race. My system identifies “runners” who are primed to sprint ahead.

When we refreshed the portfolio two weeks ago, we added seven new stocks to our All Market portfolio. High turnover like that is normal. In any given cycle, we could potentially see all 10 stocks replaced. But it’s definitely on the high side of normal. In most months, we tend to only replace four or five stocks.