Whenever you see hot stocks picking up the pace, it’s often because the fundamentals attract the attention of big-money investors.
However, investors should be aware that this isn’t always the case. Many times, hot stocks move based on stories, rumors or themes, even though at the same time, the fundamentals are screaming “go elsewhere!” And what happens when those fundamentals are eventually reflected in the stock price? You suffer a fast, steep loss as the smart money — who can trade much more quickly than you — moves onto the better picks.
Fortunately, if you keep your eyes off the biggest headlines of the day, using Portfolio Grader can help you separate the real winners from the short-term pretenders.