Momentum Monday 17th June 2024

Welcome to Momentum Monday.

There was a disconnect between Australian and US Markets last week, as their Tech Heavy index out performed our Mining Heavy Index. From time to time this will occur but it doesn't mean the narrative is any different. As a Momentum Investor you will understand that there are times when certain sectors are hot, and times when they are not.

Therefore this raises the question of diversification, and if you ask me from a Fundamental perspective, I say it is essential. If you ask me from a Momentum perspective I say there in no need to diversify, PROVIDED you have your exit strategy defined for every stock. No questions. It is easy at the moment to see the stocks that are not going up relative to a market at all time highs, therefore keep your trigger finger in your pocket, and wait for the price to show you the right signs.

As the great Quality Investor Warren Buffett said, “The stock market is a device for transferring money from the impatient to the patient” - this is just as true when it comes to Momentum investing. Ours is not to pick tops and...