Why Trending Stocks?

Trending Stocks is a blog dedicated to spotting a handful of momentum stocks each week that are in well defined uptrends.  Why would an investor want to do this?  Simply put, there are certain things that actually work in the stock market, and momentum is one of those things.  It is no coincidence that momentum strategies are the core strategies of many hedge funds and managed futures funds.

Contrary to popular belief, most stocks under perform the indices.  In fact, it is only a small minority of stocks that drive most of the market gains…

Source:  Blackstar Funds, "The Capitalism Distribution"

Source: Blackstar Funds, “The Capitalism Distribution”

Source:  Blackstar Funds, "The Capitalism Distribution"

Source: Blackstar Funds, “The Capitalism Distribution”

This is illustrated in a research paper (graphics above) released by Blackstar Funds entitled “The Capitalism Distribution”.  During their study of 8,054 common stocks from 1983-2007, Blackstar found that the average compounded return of all stocks was -1.06%.  With odds like that, it is no surprise that 80% of money managers fail to beat the S&P 500 every year.

Trending Stocks seeks to identify those stocks with the greatest potential to experience rapid price appreciation.  Readers of this blog will find weekly posts identifying our stocks to watch.  This blog will be most useful to those investors take an active role in managing their stock investments and who employ medium to longer term trend trading strategies. Our information is not designed for in-and-out day trading but rather better suited for longer-term swing trading.  Trending Stocks is not an investment advisor and, of course, readers should perform their own due diligence before deciding whether to buy or sell any security.

 

Trending Stocks is not an investment advisory service, nor a registered investment advisor or broker. Investors should base any buy and sell decisions based on their own due diligence and the advice of their own financial and investment advisors.

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