Archive Category: Infinite Momentum Alert Archive

Last August, we had a discussion on whether sector concentration is a “good” or “bad” thing. The question we’re asking is… If our system tells us to buy five, six or even seven, say, “homebuilder” stocks … should we do it? Or, should we buy fewer homebuilder stocks, so that our 10-stock portfolio isn’t so heavily concentrated in one sector?

Over the past week, markets have seen unprecedented volatility, with President Trump’s aggressive new tariff policies taking shape in real-time. This is a challenging environment for investors… But it’s also the kind of environment where a systematic approach like ours can become an invaluable tool for consistently beating the market, as you’ll see in today’s video update.

We’re just a week away from our next Refresh Day — mark your calendars for next Friday, April 4. While we wait patiently and allow our portfolio holdings to do their thing, let’s tackle a great question I’ve pulled from the Member’s Mailbag this week…

The Infinite Momentum Alert strategy is built on three key investing factors that have been proven to generate long-term, market-beating returns in academic research and backtesting. Those factors are Quality, Value, and Momentum. Looking at the broader market … for more than two years now, Momentum has been in the driver’s seat — with mega-cap “Magnificent Seven” stocks clocking some outrageous gains.

I’ll cut to the chase… Today’s performance review isn’t as rosy as our last one. Whereas we locked in an outstanding 16.2% gain on our Tech Titans portfolio heading into early February, we suffered a loss of -9.7% last month. What happened?