Hello russett, most informative of potatoes,
I propose a round of beers to the many informative hamsters heard recently on this thread. A learning curve with a bit of humour is of tremendous benefit, especially when delivered in such an even-handed manner.
I'd only add that the one ingredient all momo investors need is good, regular volume, with signs that it might be increasing. (This is why WSP can be reasonably predicted)
Another description of a momentum investor centers on the greater fool theory, which basically implies that you'd only purchase over-priced assets when you believed that someone else would pay you more for it later. In this case, the only fundamental characteristic that applies is demand, assuming the supply is too slow to adjust in the short run. Examples would be the real estate boom in Ontario in the late 80's, the Japanese stock market in the 80's, the present internut mania, diamond stocks 5 years ago, etc.
Well done by all, and cheers!
Confluence,
quietly trying to become a wealthier hamster, using the tried-and-true "undervalued German pharmaceutical" route this week. |
