Don't Chase Momentum. There's a Better Way To Invest | RealClearPolitics
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by Steven Sears, Barron'sFebruary 23, 2026
AI-Generated Deep Dive Summary
Steven Sears, in his article for Barron’s dated February 23, 2026, challenges the widely held belief that chasing momentum is the key to successful investing. He argues that relying solely on short-term trends and market fluctuations can lead to risky and unsustainable outcomes. Instead, Sears advocates for a more disciplined approach that focuses on long-term fundamentals and patient investment strategies.
The article highlights how momentum trading, while often tempting due to its potential for quick gains, is inherently volatile and difficult to sustain over time. Sears points to historical examples, such as the tech bubble of the late 1990s and the financial crisis of 2008, to illustrate how relying on short-term trends can lead to significant losses when market sentiment shifts suddenly.
Instead of chasing momentum, Sears suggests that investors should focus on identifying strong fundamentals, such as consistent earnings growth, sound financial health, and competitive advantages for companies. This approach, he argues, reduces risk and increases the likelihood of long-term success. Additionally, Sears emphasizes the importance of patience, allowing investments to grow over time rather than trying to time the market or capitalize on fleeting trends.
The article also touches on the psychological challenges
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Originally published on RealClearPolitics on 2/23/2026