Follow Signals, Don't Chase Price - JD Henning

Core Insights - The discussion emphasizes the importance of following market signals, particularly focusing on value and momentum as key metrics for investment strategies [3][4][5] - The current market has shown significant volatility, with a notable 20% decline earlier in the year, but portfolios managed by the speaker have outperformed the S&P 500 [6][7][9] - The speaker highlights the success of various portfolios, including a premium portfolio that trades based on positive S&P 500 signals, achieving a 28% return during positive weeks [8][11] Market Analysis - The basic materials sector, particularly gold and mining stocks, has been identified as a strong area for investment, with specific stocks like Centerra Gold and Buenaventura showing over 100% gains [19][21] - Healthcare is noted as a sector that has been beaten down but is showing potential for recovery, especially in biotech funds [22][23] - Regional banks are highlighted as a sector to watch, particularly with anticipated rate cuts benefiting smaller cap stocks [24] Portfolio Performance - The speaker reports that in the past year, there have been 102 picks that gained over 20%, with 12 picks exceeding 200% gains, showcasing the effectiveness of the investment strategy [16] - The Piotroski Graham value portfolio has consistently outperformed the S&P 500 over the past eight years, never recording a negative year [14] - The active sector ETF portfolio has achieved a 53% return year-to-date, demonstrating the success of the strategy in both bull and bear markets [25][32] Investment Strategies - The speaker employs a quantitative process using momentum gauges to guide investment decisions, allowing for flexibility in risk levels based on daily, weekly, or monthly signals [10][12] - The strategy includes a mix of aggressive gainers and long-term value stocks, with a focus on sectors that are performing well [12][14] - The speaker encourages investors to consider ETFs for diversification and to follow market signals for optimal timing [36][38] Sector Focus - The technology sector, particularly semiconductors, has been performing well, with specific funds showing significant gains [51] - Utilities are also mentioned as a unique opportunity due to their high dividends and growth potential amid energy demands from AI projects [57] - The crypto sector is viewed positively, with expectations of favorable regulations and potential for growth [55][56]