I was playing with the top 500 local stocks by capitalisation and decided to generate the table below which looks at the year to year performance of the top 10% which I arranged into very loose bins below.
As you would expect there are a small number of outliers and a cluster around the bottom of my cut off point. I should also note that out of this population 403 stocks made a positive gain whereas only 97 made a negative gain – these are not bad odds for picking a stock that at some point during the year demonstrated a positive gain.
The market will always give you opportunities – you just have to listen.
