Buying the losers pays off in 2016

Justin Walters, co-founder of Bespoke Investment Group
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Amr Abdallah Dalsh | Reuters

In bull markets, you typically see momentum stocks outperform, as gains beget gains. But 2016 has been different thus far as a rotation has taken place, signaling to us that we're in a new "leg" of this bull market.

To quantify the rotation, below is a chart showing decile performance in 2016 based on stock performance in 2015.