Kiplinger Personal Finance Magazine — Treussard on Momentum Investing: A Double-Edged Sword

In a recent article by Kim Clark in Kiplinger, I had the opportunity to share my thoughts on the complexities of momentum investing. While momentum strategies can offer significant returns, they also come with inherent risks. At Treussard Capital Management, we emphasize the importance of understanding investor psychology and market mechanics.

🔍 Key Insight: "History is full of examples of upward momentum being accelerated by investors’ lemming-like fear of missing out. Falling prices can likewise be reinforced by trend-chasers, as well as by market mechanics such as margin calls." - Jonathan Treussard, Ph.D.

Last week, we experienced firsthand how margin calls can impact the market when it seized up, underscoring the need for vigilance and strategic planning.

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Disclaimer: This content is for informational purposes only and should not be considered as investment advice. Please consult with a qualified financial advisor before making any investment decisions.