Dogs of the Dow

in #introduceyourself7 years ago (edited)


Dogs of the Dow is a fairly simple investment strategy.

Basically buy the worst performers (bottom third) of the stocks that make up the Dow Jones Industrial Index (DJIA), hold them for a year, sell them, and do it over and over again.

To me "Worst Performing" is simply a matter of share price movement, but many others judge it in terms of Dividend Yields.

In my younger days, I was schooled in the "Efficient Market" Hypothesis and would of told you a strategy like Dow of the Dogs would not work because the expected effect would already have been priced in.

In the years since, research by Behavioral Economists has indicated that the Efficient Market Hypothesis are not able to explain the out performance that the Dogs of the Dow investment strategy appears to deliver.

So each week, I am going to review some of the Dogs as I build my portfolio and monitor their performance. Lets see if it really does tend to outperform the market.

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I'll be interested to follow this one. I looked into DotD a while back but never tried it.

I wrote a Steemit post also, and suggested it may be possible to do a similar thing with crypto exchanges rather than stock exchanges.

I look forward to seeing how you get on with it !

Maybe you could call it Crypto Dogs.

ha ha, fitting name... :-) I still might try it someday, for crypto. I don't trade it as a rule but it might be nice to paper trade it anyway, see what happens. Tbh crypto is so flakey you would need to try it for years and years to get a real indication.

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@dowdogs I would like to work together on this one. Because it fits with a series of posts I am planning. Let me know if you're interested.

I would be happy to work with you on it.

Better to make sure we complement each other rather then duplicate.




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Welcome to Steemit @dowdogs! Introbot is hosted and managed with donations from @byColeman to help make your journey on Steemit be truly rewarding. Your feedback is always welcome so that we may improve this welcome message. Oh yea, I have upvoted you and followed you. Many blessings from @introbot & @bycoleman

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I am excited to see what I will learn from your posts!

welcome friends in steemit hope we can work together @zuhrafriska

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Hello dear ! Welcome to Steemit ! I'm a cryptocurrency trader with really good results, 70%, 258%, 300% (REAL) Feel free to join me on Steemit to get great info&way to understand & invest in the crypto world ! CQRTC.

welcome to the steemit and agree with your strategy

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