Barking Up the Right (Investment) Tree – The Dogs of the Dow Theory

Te ‘Settled Dogs’ The strategy uses a straightforward approach to selecting and arranging shares in the Dow Jones Industrial Average as a result of maturity. The Dow Jones Industrial Average is an index of 30 world-renowned companies. The Dogs of the Dow, a variation of this strategy, became popular in the early 1990’s as a means to beat the general index. Since then, this investment method has shown impressive results, at times, better than the S&P 500.

The reason behind the choice of the Dow Jones Industrial Average (DJIA) assets and the high turnover rate is that the stocks selected are close to the bottom of the business cycle, which is likely to increase further. of the price if compared to the small shares of the product.

The Dog of the Fleet is the average adult overweight. Creating a fund that will be distributed among the 10 DJIA companies with high turnover rates at the beginning of the year and allocating this fund each year to reflect the differences of the 10 companies in the year calendar. For example, if you have a $ 100000 investment strategy, you would invest $ 10000 in these 10 companies on the DOTD list.

Growing the right tree – Great returns and downsides

This investment approach has little to do at the end of each year. But it has been moving away from the Dow Industry Index for a long time, with very little chance. Dogs of the Dow (DOTD) has posted a significant average of 14.30 pounds of paint to 11.10 percent of the Dow’s Industrial Stock trade. In addition to being a useful feature, Dow-rated Dogs are much safer.

To be successful in implementing this strategy, you need to keep all the indicators marked for the whole year as some stocks may be damaged and potential value may be lost.

Why is the DOTD strategy so effective?

The sale of DOTD stock options states that you are buying soft stocks at DJIA, companies that are not very popular in the stock market, but are still large companies. It is hoped that the true value of these low-cost products will be achieved, and that you will be able to reap good results by the end of the year by selling these stocks and buying new ‘Dogs for Dogs’ items. . When you buy new dogs in the next financial year, you say you are buying more shares that the stock markets do not accept and waiting for them to increase.

However, returns made under the Gold for Dog strategy will only increase if the results are re-released. Remember, this strategy is not short-lived. If you want to beat the market and increase the right investment stock, patience is the key.

2013 Dogs for election selection

The Dogs of the Fleet started out well in 2012, but the final deposits were strong. The overall return increased by 7.1 percent for 2012 to 13.6 percent posted by the Dow Industrials. While the strength of most stocks was strong, the weight of Intel and Du Pont’s responses resulted in higher returns.

The Dow’s 2013 Dog Lists are somewhat similar to the two modifications. Hewlett-Packard and McDonalds are the new recruits to replace companies such as Kraft and Procter & Gamble.

Perspective

Dogs are not the smartest and smartest investment strategy in the world, but they can add value to any bank account. It is always necessary to combine other investments with this strategy to higher yields. Keep in mind that while the ‘Dogs of the Dow’ are effective in returning, the stock market is a money changer for products. There is no difference of DOTD, you must accept this case as a lender.

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