The other day I spoke at the National Association of Active Investment Management ETF Symposium. There were about one hundred money managers seeking additional information about tactical approaches to trading ETFs, so I was able to network and meet a few portfolio managers most individuals only read about.
One of the participants was Greg Morris of PMFM Inc.(they manage over $1 billion). We had a great conversation about technical analysis, fundamentals and how they apply to the investment decision making process. I found our conversation to be quite informative and thought provoking. I bring this up because during the conversation Greg told me the following … “All of the financial theories and all of the fundamental analysis in the world will never be any better then what the trend of the market will allow”.
If you stop and think about the quote it makes complete sense. How many times have you entered a position based upon fundamental facts and proceeded to lose capital only to realize you were investing against the trend?
Happy Trading
Mike Matousek, CMT
Portfolio Manager , ETF Updater
www.etfupdater.com
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