Each are little more than momentum plays.
A momentum play is when you decide to invest time, money, energy, attention or view something only because it is moving big in one direction (or at least it appears that way), but you really know nothing about the fundamentals of the person, company, country, subject matter, beliefs, law firm or whatever into which you invest.
It is often referred to as a "momo play" as well. And, what really sets it apart is that the momentum or perceived momentum is really just in one's head. It is no more than a hunch. In short, just like all of those that decide to buy a lottery ticket only for the reason that everybody else is doing it, a momentum play is nothing more than gambling. Maybe you will get what you want for your investment, but it is very unlikely.
Whether we are talking about business capital, operating capital, political capital, personal capital or the prospect of a payout, the investment is usually a zombie, meaning it has a negative net worth. This is because momos have nothing to do with assets, or earnings, or security, or anything else. It is terribly intangible and it is build on image and pageantry.
Some like to refer to this as the value of potential, and certainly in some things like undervalued real estate this might sometimes be true. But, it is true for the opposite reason. The real estate, for example, has no momentum or it has negative momentum in a market that is otherwise determinable and rational. In short, nobody wants the property because of perceived problems, but if one can fix those problems the market has comparables on which the asset can be rightfully judged.
It really does not matter if you bought tulips in the Netherlands in 1636, tech stocks in the 1990s, or shorted the investment banks in 2008, the challenge of any momo play is knowing when to get in and get out. Every momentum play contains stories of someone or some company in which the investment paid off, but generally speaking most everybody fails. Again, much like a lottery your chances of winning by buying a lotto number is not too statistically different than if you did not buy a number at all.
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