Momentum Trading Still Going Strong
from the follow-the-momentum-downward dept
With all the post-bubble talk of a return to “value investing” some folks have noticed that there’s a lot more talk than action. People still tend to be momentum investors – buying stocks simply because other people are buying them, and therefore they’re likely to go up. As an example, he discusses Juno Online, which has ridden the momentum wave back up a bit, but has fairly dim prospects overall. I’m not convinced, though, that all of the reasoning is momentum. While Juno may have problems, they have made some announcements (admittedly discounted in this article) that at least sounded positive. And not all investors will be able to read through the details to realize those positive announcements really aren’t that good.
