Today, I want to tell you about an investing strategy that defies logic. It shouldn’t work based on everything we’ve learned about the stock market. #-ad_banner-#Yet it does. In fact, for over half a century, investors and traders have used this strategy to produce unparalleled results. And no, for those of you who may be wondering, this strategy doesn’t involve options, derivatives or any other obscure financial product. What’s more, what I’m about to show you can be used as part of any general investing strategy — regardless of whether you’re focusing on income, growth, blue chips, small caps or… Read More
Today, I want to tell you about an investing strategy that defies logic. It shouldn’t work based on everything we’ve learned about the stock market. #-ad_banner-#Yet it does. In fact, for over half a century, investors and traders have used this strategy to produce unparalleled results. And no, for those of you who may be wondering, this strategy doesn’t involve options, derivatives or any other obscure financial product. What’s more, what I’m about to show you can be used as part of any general investing strategy — regardless of whether you’re focusing on income, growth, blue chips, small caps or even commodities. Specifically, I’m talking about relative strength investing. Relative strength investing is simply a type of momentum investing. It involves buying the best-performing stocks (relative to the market) and holding them until their momentum changes course. To most investors, especially those considered value investors, this strategy probably sounds ridiculous. After all, most people have heard the phrase “buy low, sell high.” Since relative strength investors buy stocks that are already outperforming, many view this style of investing as counterintuitive. But that’s a mistake — and it’s one many people make when they approach a stock pick. Most… Read More