Momentum Rules in U.S. Stocks Stuck in Worst Rut on Record
A strategy of buying stocks with the best history of price appreciation in recent quarters, such as Skyworks Solutions Inc. and Netflix Inc., while shorting the worst like Chesapeake Energy Corp. and Freeport-McMoRan Inc., has gained 15 percent this year, according to data compiled by Evercore ISI.
Photographer: Andrew Harrer/BloombergStick with your winners, goes an old Wall Street adage -- advice that is working better now than almost any time in the last quarter century.
Momentum stocks, or shares with the most price appreciation in the last two to 12 months, are rising three times as fast as the Standard & Poor’s 500 Index in 2015, on par with the best years ever recorded. In a market stuck in the tightest trading range ever measured, industries like biotech and online retailers are posting gains of 30 percent or more.