Price Factors

Price Index 6M ex LM

Stocks that showed the highest increase during the last 6 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