Halftime Report Momentum’s Miserable Week 2/21/25
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Feb 21, 2025 Steve Weiss, an investment professional at Bank of America, shares insights on market trends, while Jenny Harrington, a portfolio manager, discusses behavioral investing strategies. Jim Labenthal adds his analysis on specific stocks. The trio dives into the recent downturn of momentum stocks like Robinhood and emphasizes caution in volatile markets. They debate defense stocks amid global tensions and explore investment prospects in the healthcare sector. The discussion highlights how consumer behavior influences market resilience during these turbulent times.
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Momentum's Impact and Rollover
- Momentum stocks, like Palantir, significantly drove the recent bull market.
- However, a considerable rollover in these stocks raises concerns about the market's next phase.
Momentum Investing and Gravity
- Avoid chasing overstretched momentum stocks like Palantir, HIMSS, Grab, and Robinhood.
- Consider buying Robinhood if it drops to the 40s due to its growth potential and attractive call premium.
Multiple Expansion and Market Malaise
- Multiple expansion drove the market higher, but this is unsustainable in riskier, higher interest rate environments.
- Stocks with weak fundamentals are more troubling than those that simply ran ahead of themselves.