Ignore Momentum Advice — Buy Real Growth Stocks

Wednesday, April 9, 2014

“They” are at it again, trying to trip up our investment plans. A deluge of articles warns that “momentum” investing (i.e., investors chasing performance) created a bubble-like environment that is now popping. The conclusion? Run from growth, and focus on dividends and safety.

That great advice for April 2000 and April 2009 is terrible for April 2014. The rehabilitation and rebuilding of the broken U.S. economy and financial system is done. Likewise, stock market participation and valuations are back to normal. In this environment, “value” (i.e., low P/E or high dividend yield) stocks offer neither superior return potential nor better risk protection.

This article is published on Forbes.com


Leave a Reply

You must be logged in to post a comment.

Search

John Tobey on Seeking Alpha

Seeking Alpha Certified

April 2014
S M T W T F S
« Mar   May »
 12345
6789101112
13141516171819
20212223242526
27282930