Worried about new acquisitions filling up your home this holiday? Here, organisational experts share tips to jettison old, unwanted items—whether you’re motivated by profit, charity or sheer exhaustion.
2 min
SMUG MINIMALISTS often tout the “one in, one out” rule, a clutter-control practice that involves removing one item from your home any time you add another. But during the amped-up accumulation of the holidays, even typically type-A housekeepers can find themselves derailed and searching for ways to cull the excess. “So much stuff is coming into our homes this time of year, along with pressure to be jolly,” said Chicago-based professional organiser Sarah Parisi of the Clutter Curator. “It’s a natural time to declutter.”
To help expedite the process, here she and other home experts share tips for deaccessioning effectively.
Prioritize. “The biggest question I ask my clients is what’s worth their time,” said Washington, D.C.-based decluttering expert Jenny Albertini. “Identify which pieces offer the highest return and focus your efforts on [selling] those.”
Local auction houses or upscale online décor marketplaces—like Incollect, 1stDibs or Chairish—are Albertini’s go-to for unloading particularly valuable furnishings. For everything else, New York-based interior designer Amy Lau prefers Facebook Marketplace. “It’s quick and commission-free,” she said—and though managing the selling process can be laborious, the payoff is usually worth it.
Craving a truly clean slate? Check EstateSales.org to find a house-clearing company to prep your home for a monster tag sale. “They’ll keep a percentage of the profit,” explained Albertini. “But you do much less work.”
“The best way to get rid of stuff is whatever gets it out of your house fastest—usually donation,” said Dallas-based decluttering expert Dana K. White. For that reason, she encourages clients to think of organisations like the Salvation Army as service providers—and not to get hung up on which charity feels like a “just-right” match. Start with local homeless shelters, churches or Goodwill, which is as “ubiquitous as Starbucks” and a “good option for generalised donations,” Albertini said. Animal shelters sometimes accept odds and ends—like pillows and bedding—that other organisations won’t.
If you’re ready to part with an item but believe someone else could cherish it, steer toward organisations like Humble Design. This nonprofit—which operates in Chicago, Cleveland, Detroit, San Diego and Seattle—collects donated furniture and household items either by drop-off or pick-up and stores the goods in their warehouse. Humble’s designers and volunteers later “shop” the warehouse to furnish homes for families emerging from homelessness. Similarly, to keep reusable household items from landing in landfills, Habitat for Humanity’s ReStores accept used furniture, appliances, housewares and building materials and resell them to the public at discount, using the profits to build affordable housing worldwide.
Does decluttering seem like just another chore? For clients who are loath to add another item to their to-do list, Albertini recommends OfferUp, a classified service akin to Facebook Marketplace that requires fewer fussy photos and descriptions. She also likes the consignment site Kaiyo; it will pick up, store, clean and deliver your furniture to its eventual buyer for a percentage of the sale price. For anything leftover, hire a hauling service like 1-800-Got-Junk, Dolly or Junk King, which do 100% of the heavy lifting for you. Bottom line, says Lau: “If you don’t love it or use it, lose it.”
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Wall Street’s hottest momentum trade has reversed sharply, as former winners tumble and heavily shorted stocks surge.
3 min
Wall Street’s hottest trade has gone ice cold.
For years, it paid off to buy stocks that were rising in price—and bet against struggling shares. The momentum trade was especially profitable this year, as investors piled into hot stocks including Micron Technology, Nvidia, Advanced Micro Devices and other artificial-intelligence darlings while wagering against those likely to be hurt by the embrace of AI.
The S&P 500 Momentum Index soared 44% in the second quarter, its best quarterly performance on record, and it surged 133% over the past five years, nearly double the broad market’s performance.
Mega funds and rookie investors alike piled into the trade, some using leverage and options contracts in an effort to amplify their returns, propelling the underlying shares higher.
“It is a self-fulfilling prophecy,” said Matthew Tym, managing director at Cantor Fitzgerald, of the trade.
Suddenly, the trade is a loser. The momentum index has tumbled more than 9% since July 1, lagging behind the S&P 500’s 2.8% gain. The index—which tracks stocks in the S&P 500 based on a “momentum score”—is on track for the biggest quarterly underperformance in 25 years. July was the second-worst month for the momentum trade in around 40 years, according to Bank of America estimates; the only month worse was April 2009, in the teeth of the global financial crisis.
Hedge funds that bought momentum shares while shorting low-momentum stocks suffered even more. At the same time, a basket of the most popular stocks held by hedge funds tracked by Goldman Sachs recorded its biggest one-month underperformance in July relative to the S&P 500 in more than 20 years, according to the bank’s analysts.
Momentum trading is based on a rather simple observation: Investments that go up tend to keep outperforming; those that underperform often remain laggards. This kind of trading might seem too simple a stock-picking strategy to work. Yet it often has.
“For decades, it didn’t take a lot of sophistication to run a momentum strategy and make a decent living at it,” says Agustin Lebron, senior researcher at EquiLibre, a trading firm.
Part of the reason: It takes a while for corporate and other information to spread to various investors, so they slowly build positions, producing buying momentum.
“A huge pension fund can’t flip around its positions in a day,” says Lebron. “Behavioral biases also account for some of the effect, as well—people tend to sell their winners too early and hold losers too long.”
Fans of the strategy point to the human tendency to extrapolate from past results—and chase investment returns—noting that momentum patterns have been evident in markets for decades, even centuries. They also say that some of the worst months for momentum strategies are during longer periods of outperformance.
Some have been doing the trade by buying the strongest investments in a sector while shorting the weakest; others lean in to rising markets or asset classes. Still others use a quantitative approach or turn to banks or others who sell ways to make distinct wagers on momentum as a “tradable factor” or a “thematic basket.”
The fans remain believers. “Any strategy has disappointing periods,” says Antti Ilmanen, global co-head of the portfolio solutions group at AQR Capital Management.
The surge in Moderna and other biotech stocks helped crush the momentum trade. These shares were among the most heavily shorted in recent years, but positive news on a cancer vaccine from Moderna and Merck sent those stocks flying, crushing some quant and other hedge funds. Moderna is up around 150% so far this month.
These traders had an especially rough day on Aug. 19, which Goldman Sachs told its clients was the worst day for “systematic long-short managers” in more than two years. About half of the losses were because of momentum trades, the bank said.
Some traders have begun to short, or bet against, the very stocks that propelled the momentum trade earlier this year. Net short positions in futures tied to the Nasdaq-100 index among speculators recently climbed to some of the highest levels of the past two decades, according to data from the Commodity Futures Trading Commission.
The about-face is a sign of how markets have become more treacherous for investors, even as indexes keep climbing. Part of the issue: the recent meltdown of Situational Awareness, a hedge fund that had piled into some of the most popular momentum shares, including chip stocks. After a period of market tumult, Nvidia shares rocketed almost 9% after its earnings, showing how quickly sentiment can shift.
Some investors say the run-up in share prices driving tech stocks higher reminds them at times of the dot-com frenzy decades ago.
Mike Ogborne, the founder of San Francisco-based Ogborne Capital Management, said he has grown more cautious on technology stocks and is keeping more of his portfolio in cash than he typically does.
And he is nervous about the surge in spending by technology giants and quarterly capital expenditures that keep rising.
“It is a little bit like Cinderella and the clock striking midnight. You don’t know when midnight is going to come around,” Ogborne said. “They don’t send a memo around telling you when the capex cycle is over.”
