Archive Category: Infinite Momentum Alert Archive

In last week’s note, I told you how our system has done a great job of getting us into gold miner stocks in our “All Markets” portfolio. It’s particularly impressive given the fact that nobody really expected gold to rally under President Trump.

As a data-driven investment strategist, I do my best to take political rhetoric with a grain of salt. Instead, I let the numbers do the “talking.” Let me give you a quick example …

The evidence is mounting… An epic rally in small-caps stocks is about to be unleashed. I don’t expect our large-cap “Tech Titans” portfolio to become a total slouch as this happens. But I’ll bet our unconstrained, small-cap leaning “All Markets” portfolio will strongly outperform over the next six to 12 months.

We talked a few weeks ago about the higher volatility we experience in our small-cap leaning “All Markets” portfolio relative to the “Tech Titans” portfolio. Weathering that volatility comes with a benefit, though: higher returns. Today, we’ll explore another benefit I see in the All Markets portfolio … a benefit that relates to sector diversification, or concentration, depending on how you look at it.

Are we on the verge of a massive, bullish breakout in small-cap stocks? Two data points point to the answer being, yes! First, a piece of analysis from Bespoke Investment Group …