DJ RBP U.S. Large-Cap Leading 30 vs. Lagging 30 Indexes: Year to Date Performance

The chart above shows the outperformance of the DJ RBP US Large-Cap Leading 30 Index over the DJ RBP US Large-Cap Lagging 30 Index. The Leading 30 Index is composed of the thirty stocks in the Dow Jones US Large-Cap Index with the highest RBP Probabilities, while the the Lagging 30 Index is composed of the thirty stocks in the Dow Jones US Large-Cap Index with the lowest RBP Probabilities. It is remarkable how well RBP Probability has been able to differentiate among stocks that subsequently perform good or bad. Year to date, the Leading 30 Index has returned +18.09%, while the Lagging 30 Index has fallen 2.03%.

It is noteworthy too that the leading 30 stocks have done better in both the market decline of the first two and a half months of the year as well as the rising market we have experienced since March 9. That is, because the market will dictate what general direction stocks move we can’t expect the leading 30 stocks to always go up and the lagging 30 to always go down. But we can expect the leading 30 to perform better than the lagging 30.