Perspective | Vol. 1 Issue 1 | Fall 2021

Investing continued...

A partial view of Microsoft stock

Eugene Fama, the University of Chicago professor who created the efficient markets hypothesis, famously considers momentum the “premier anomaly.” At Spectrum, we use many sources to quantify momentum. Still, we rely heavily on point and figure charting (see a partial view of Microsoft stock as an example) for security and market direction cues. We believe that Point and Figure charts filter insignificant market noise and focus only on price, providing a disciplined yet straightforward method of identifying current or emerging trends.

Conclusion There are infinite methods of stock selection. We base our selection methodology on fundamental measures such as those associated with high-quality companies. We combine these with technical attributes through the momentum factor as a litmus test to our analysis. We believe the technicals represent a collective view of all market participants, be that for an individual stock, sector, or market, and a critical element of deciding what we own and when we own it.


Cryptocurrency and Meme Stocks Explained

Kelli Maxwell Communications and Marketing Manager

Greg Thompson CMT ® Senior Investment Analyst

Nate White Portfolio Strategist

Everyone seems to be talking about cryptocurrency and meme stocks. Maybe you have seen posts on social media, have had conversations about it among friends, or have heard about it on the news—but do you know what all the hype is about? Before you jump on the bandwagon, you will want to understand how trending stocks work and the new technology behind cryptocurrency.

Here are some expert insights from our Chartered Market Technician ® , Greg Thompson, and our Portfolio Strategist, Nate White. Q. What is a meme stock? A (Nate): Meme stocks are securities that gain viral attention through social media platforms. These securities see an increase in volume due to hype on social media, not because of how well the company performs. Often, meme stocks become overvalued with sharp price increases over short periods.

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