Don't Chase Momentum. There's a Better Way To Invest | RealClearPolitics
RealClearPolitics
by Steven Sears, Barron'sFebruary 23, 2026
AI-Generated Deep Dive Summary
The stock market’s recent fluctuations serve as a stark reminder that not all volatility is created equal, offering both risks and opportunities for investors. While some may be tempted to chase short-term momentum, this approach often leads to poor decision-making and missed opportunities. Instead, the article suggests adopting a more disciplined investment strategy that focuses on long-term goals rather than reacting to short-term market swings.
Momentum trading, which involves trying to capitalize on trends, can be particularly risky in volatile markets. Investors who rely solely on chasing trends may end up overreacting to market movements, leading to costly mistakes. For example, jumping into high-risk assets during a rally or panicking and selling off during a downturn can erode returns over time.
The article emphasizes the importance of staying grounded and avoiding emotional reactions to market volatility. Instead, investors should focus on fundamentals, such as company performance, economic indicators, and long-term trends. By doing so, they can make more informed decisions that align with their financial goals rather than being swayed by short-term noise.
In a political and economic landscape where uncertainty is constant, the article underscores the value of discipline in investing. Whether it’s geopolitical tensions, shifting policies, or economic data releases, external factors often drive market movements. Investors must remain
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Originally published on RealClearPolitics on 2/23/2026