Mark Newton, Global Head of Technical Strategy at Fundstrat, Discusses “Buy High, Sell Higher” Strategy Using Nvidia as an Example

Mark Newton, global head of technical strategy at Fundstrat, is shaking up traditional investment advice with his “buy high, sell higher” strategy. In a recent interview with Yahoo Finance’s Jared Blikre and Sydnee Fried on “Stocks in Translation,” Newton explained why this approach can lead to better investment outcomes and cautioned against the common wisdom of “buy low, sell high.”

Newton emphasized that trying to time the absolute low of a stock or sector can be a risky endeavor, as laggard groups often take time to strengthen and recover. Instead, he advocates for buying high and selling higher, focusing on stocks that are showing price strength and momentum.

Using Nvidia (NVDA) as an example, Newton highlighted the importance of paying attention to both fundamentals and technicals in making investment decisions. He referenced legendary investor William O’Neal, who found that some of his greatest investments occurred after a stock had moved to new all-time high territory.

While Newton is currently invested in Nvidia, he hinted that diversifying may be a wise move in the months ahead, based on his analysis of the charts. However, he noted that technology as a sector still makes sense to him overall.

Newton’s unconventional approach challenges the conventional wisdom of buying low and selling high, suggesting that chasing momentum and strength in stocks like Nvidia could lead to more profitable outcomes. Investors looking to shake up their strategy may want to consider Newton’s “buy high, sell higher” philosophy.
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