XLRE - The trend is your friend -- what worked in April
Studies show 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 April?By style: Stocks with high profitability characteristics led investment factors in April, followed by those with high leverage. Rounding out the top three was value (last month’s outperformers). Should you anticipate what has recently worked to continue to work, here’s a stock screen for the stocks with “A” or greater quant grades in profitability. Using only ETFs to measure factor performance, Momentum (MTUM) rose 7.06%, Growth (IUSG) rose nearly 7%, and quality (QUAL) rose 4.8%. The worst performing factors by ETF were high dividend yield (VYM) up 2.55%, dividend growth (DGRO) up 3.4% and value (IUSV) up 3.3%. By sector: Real estate (XLRE) led, up 8.3%, followed by Financial Services (XLF) up 6.5%. The laggards included energy (XLE) up 0.7%, and
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The trend is your friend -- what worked in April