Halftime Report Momentum Meltdown 12/10/24
Dec 10, 2024
In this lively discussion, Josh Brown, a market trend expert, and Stephanie Link, a seasoned portfolio manager, explore the recent momentum meltdown affecting investment strategies. They delve deep into the risks of momentum investing and highlight the strong rebound of companies like AppLovin and MicroStrategy. Insights on underperforming cybersecurity stocks and strategic reallocations reveal their guarded optimism. The duo also analyzes surprising trends in energy stock performance, shedding light on critical investment shifts as they approach the new year.
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Momentum Meltdown
- Momentum stocks can experience rapid gains, but also sharp reversals.
- Consider supplementing momentum strategies with quality screens to mitigate risk.
Managing Momentum Risks
- Implement risk management tools like stops or options to protect gains in momentum stocks.
- Don't overreact to single-day drops, as breakouts can fail without signaling fundamental issues.
Zscaler: A Contrarian Cybersecurity Play
- Stephanie Link bought Zscaler, a cybersecurity stock down 7% YTD, as a contrarian play.
- She believes cybersecurity's total addressable market is large and expects consolidation in the sector.