Archive Category: Infinite Momentum Alert Archive

In last week’s Performance Review note, we ended with an open question about whether concentration in a single sector or industry group is a good or bad idea. The question emerged as we learned that, although we beat our blended benchmark (+2.8% vs. +1.9%) last month, we might have done even better had we not owned three “shipping” stocks, which lost 10.7%, 10.9%, and 15.6% during the four-week holding period in focus.

As you’ll see in the table below, our 10-stock portfolio netted a 2.8% return over the four-week holding period between June 28 and July 26. A positive return is always good — but how good is it? Whether or not the quote is accurately attributed, I often think of what Einstein (supposedly) said about relativity:

Last week, I promised we’d have a look at one of our current holdings, American Superconductor Corp. (Nasdaq: AMSC), through the lens of our three-factor Infinite Momentum system. Shares of AMSC are up an incredible 168% year-to-date, far outpacing the already-strong performance of the S&P 500. Have a look:

In recent portfolio reviews, we’ve made detailed observations about divergences between the performances of our Infinite Momentum Alert portfolio and the broad market benchmarks. Last month, I noted how the market was up while our portfolio was up more. The month before that, we witnessed our portfolio being up while the market was down.

It’s time for another Member’s Mailbag! Though this month’s issue will be a bit different… First, we haven’t had a ton of new questions in our inbox recently. (If you want to help refill the queue, email my team and me at Infinite@MoneyandMarkets.com.)