Price Factors

Price Index 6M ex LM

Stocks that showed the highest increase during the last six months continue to move upwards in the following months. At the same time, stocks that showed the highest increase during a month tend to be part of the losers during the next month. This factor improves the predictive power of the Price Index 6 months by ignoring the final month.

Price Index 6M ex LM = Price Index 6M Price Index 1M