XLP - The trend is your friend -- what stock market strategy worked in August

Studies have shown that one of the best predictors of stock price performance is recent performance. In other words, what worked recently is most likely to keep working. So: What worked in August? By Style: August was demonstrative of the above attribute, given that the momentum led the factor strategies, up 1.5% on the month. Value followed close behind, likely, in part, due to the fact that in 2021, many value stocks have also screened as momentum stocks given that their performance over the past 12 months was strong. The worst performing strategy was buying stocks with high leverage. When using a strategy of acquiring stocks with the strongest (top quintile) attributes combined with short selling stocks with the worst attributes (lowest quintile) by style, earnings quality (like the ratio between trailing twelve months earnings and sales, or net profit margin) were among the worst performing, while value and historical

For further details see:

The trend is your friend -- what stock market strategy worked in August