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I've seen a vast spectrum of different market conditions over my three-odd decades investing, but this – right now – is one of the weirder markets and more bizarre economies I can recall ever experiencing.
Value, they tell me, is dead. I dispute that; I think uninformed, static stock-picking by large institutions is really what's "dead."
That said, it's undeniable that most value managers are sucking eggs right now.
As we've seen, normally, value and momentum trade off lead position in the "here's what's working" stakes; if one is working, the other usually isn't doing so hot, but will come into ascendance eventually.
But weirdly enough, there is no real reason to cheer in the momentum camp just now, either; most momentum managers are struggling.
I'm struggling, too. Specifically, I'm "struggling" to understand how momentum lags in a rising market, but it's there in black and white: Momentum is indeed lagging and has been all year.
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of "Max Wealth" and Heatseekers.