Strategies · Core
Industry Momentum — Riding Industry Bubbles
Stay long industries with accelerating or extreme momentum — a trend overlay that explicitly rides (and must exit) industry bubbles.
Definition
Identify industries with strong and persistent relative strength (sometimes with a volume or valuation acceleration). Hold while the trend is intact; exit on a break. It is momentum plus an exit, not a buy-and-pray bubble.
Why it matters
Industry bubbles are where a lot of the momentum P&L lives. The exit rule is the strategy.
Case
Dot-com or 2020–21 software: the ride is the return; the late exit is the give-back. A time-stop or trend-break is mandatory.
How to read it
Entry rank vs exit. If there is no exit, you do not have a bubble-riding system — you have a concentration.
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