Value in 60 Seconds: Momentum Investing is Musical Chairs

13 Jun 2023 · 1 min

Watch on YouTube

0:56

David Trainer compares momentum investing to musical chairs, where popular overpriced stocks like Nvidia, Sweetgreen, Carvana, and Beyond Meat can spike and crash just as fast. He founded New Constructs to give investors clearer insight into actual earnings and profitability.

Chapters

The problem with playing musical chairs is you don't know when the music's going to stop. And that to me is what momentum investing is about. It's musical chairs. It's like, oh, it's going up from momentum. Nvidia, it's going up. I don't want to miss out on that. But oftentimes these overpriced stocks tend to fall as fast as they went up. You know, we saw that for sure with a lot of the zombie stocks. last year, all those crazy IPOs, Sweetgreen, Carvana, Beyond Meat. They saw a little bit of a rally this year, but most of that's been squashed. I would also add truth is at its most valuable when lies are at their cheapest. That's why I created New Constructs, because I wanted more people to have access to the truth about earnings and profitability.