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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Nov 7 11:47 AM EST

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To: Wowzer who wrote (29565)4/8/1999 11:11:00 AM
From: Doug  Read Replies (1) of 45548
 
rory: This is the golden age of Momentum Investing.

The reason for this is that Momentum provides the fastest price swings. Investors thru their Mutual Funds crave for returns every Q. Based on that demand,Fund Managers like a set of Hounds chase a few stocks en-masse every Q and short those that are out of favor. Fundamentals and Valuations are all meaningless to that strategy.

I would estimate that nearly 70% of the trading/ investing done today is based on that technique. A BUY and HOLD using a Momentum strategy is extremely risky.

To reduce risks, it is better to buy good Out of favor stocks and wait patiently for them to bounce back.
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