Momentum is like being on an express train headed toward the riches of Golconda. On our journey, if the Equity Express we’re on is passed by a faster moving train, we hop on over to the new train in order to keep moving forward as quickly as possible. Occasionally, all the Equity trains come to a stop. Some may even go into reverse. When that happens, we may jump on the powerful Gold Express if it’s headed in the right direction. If not, we can always transfer to the Tortoise Freight, powered by the returns earned on short term treasury notes. It consistently moves forward, albeit slowly and steadily. Once the Equity Express gets moving along nicely again, we settle back on it and enjoy the rewarding ride.
On our pleasant journey we speed past the Lake Wobegon loco motive, actively engineered by a small army of mutual fund managers who all think they are superior to one another. We rocket by the Buy and Behold, with its efficient conductor who randomly walks about shouting, “…damn the torpedoes, full speed ahead!” He’s forgotten he has to traverse the ups and downs of great hills and valleys.
Next we pass the alternative train yard full of expensive hedge fund engine wrecks and long/short conveyances going around and around in silly circles but getting nowhere. Finally comes Dante Station, with its flashing neon sign, “Abandon Hope All Ye Who Enter Here.” Led Zeppelin’s “Dazed and Confused” loudly blares from the station loudspeakers. We wave to all the poor souls just sitting there on their assets doing nothing.
All aboard the Momentum Express!![.]()
On our pleasant journey we speed past the Lake Wobegon loco motive, actively engineered by a small army of mutual fund managers who all think they are superior to one another. We rocket by the Buy and Behold, with its efficient conductor who randomly walks about shouting, “…damn the torpedoes, full speed ahead!” He’s forgotten he has to traverse the ups and downs of great hills and valleys.
Next we pass the alternative train yard full of expensive hedge fund engine wrecks and long/short conveyances going around and around in silly circles but getting nowhere. Finally comes Dante Station, with its flashing neon sign, “Abandon Hope All Ye Who Enter Here.” Led Zeppelin’s “Dazed and Confused” loudly blares from the station loudspeakers. We wave to all the poor souls just sitting there on their assets doing nothing.
All aboard the Momentum Express!