Dogs of the Dow - Worst performing Dow stocks
Company Name Ticker Recent Price 12 Month
% Price Change
GENERAL ELECTRIC CO GE 14.71 -47.966
PROCTER & GAMBLE CO PG 72.95 -15.361
MERCK & CO MRK 59.20 -6.874
DISNEY (WALT) CO DIS 102.92 -6.172
INTL BUSINESS MACHINES IBM 143.74 -4.409
COCA-COLA CO KO 41.72 -4.290
EXXON MOBIL CORP XOM 81.79 -0.921
JOHNSON & JOHNSON JNJ 125.13 1.205
3M CO MMM 202.41 2.971
UNITED TECHNOLOGIES UTX 124.55 3.079
These are the worst 10 performing Dow stocks over the past 12 months.Remember the Dogs of the Dow theory learns from behavioral economics to suggest people over correct when they see stocks doing better or worse then average i.e. they behave differently then an efficient market would dictate. There seems to be some evidence that buying the dogs of the Dow, holding them for 12 months, and then selling them delivers market out performance.
As you know I added GE to the portfolio this week. Next week I am going to have a look at Procter and Gamble (PG) and will let you know what I find.
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Interesting concept. Thanks for sharing. It would seem to be another method of sentiment tracking, though far less complex than many such as EW.
I like the KISS (keep it simple stupid) methodologies.
Upvoted ($0.17) and resteemed by @investorsclub
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I'm interested and following. You make calls, but do you cycle your stocks or just hold for a year? Wouldn't I need a year to see if this strategy pans out?
Exactly - that is why I am posting the price as I add them to the portfolio, so we can look back in a year and see if it worked or not. There are a bunch of academic studies that says it works on average - but I like to confirm these things myself.
Interesting theory. Being a crypto-only guy, I haven't heard this expressed in words before, but I have most certainly observed that effect. My "dog" investments are those I'm holding onto the tightest, because I know that realistically they offer the highest returns when they recover or go through the next hype cycle (crypto is always going through hype cycles).
Thanks to Investors Club I'm sure I'll learn many more things of this nature. If anyone wants to know which good but underperforming cryptos are available, then pop on over to my page and you'll find plenty in my posts, or have a chat in the comments somewhere and I'd be happy to discuss this with you.
old post >
https://steemit.com/bitcoin/@tradergurl/dogs-of-the-dow-for-crypto
Thanks
How about fantasy trading some crypto. I don't know of any good online tools, but you could approximate it yourself if you keep the portfolio small. Why not see what you could do in a year or so, but without risking any funds? It may show you the potential of the market better, but without the risk. And you can test how shit-hot you are ;)
I don't need to prove anything, because I don't make 'predictions' ;-)
My bottom line already tells me how shit hot I am. I'll settle for 'awesome' though lol :-)
I might try the 'crypto dogs', that would be interesting I think. But on a monthly basis, not yearly.
I'm afraid that monthly is too short. I a bear market, they'll do nothing, in a bull market they may Moon or they may miss it due to limited time. One of the biggest problems I see with crypto traders is that their memories are too short and they give up too easily.
Tell you what, if you pick a few dogs then tell me how many you picked and the approximate market cap of each. I'll then match them with a few of my own and we can see who does best! I suggest a period of 12 months, but we can do whatever suits you.
I'd literally just pick the lowest 10 market caps from the top 100, no skill involved. That's the dogs theory, it's not discretionary where you chose which ones, you have to have those ones and that's it.
Ooh, top 100 is way too high in crypto.
I have heard of people doing a similar (theoretical) experiment with the very bottom 10 coins with defined market caps. The results were very positive, mainly from one or two coins which Mooned while the others did nothing or died.
That's pretty much the idea of it, although it's meant to be around 8/10 increase while 2/10 fail (ordinary shares)
Saludos, muy buena la publicacion.. estare siguiendo este tipo de información...