Comments on: Dogs of the Dow; The End of A Great Investment Strategy? http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/ This is where your finance takes place Fri, 19 Mar 2010 06:34:17 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Blog-O-Rama: Finance and Frugality Blogs | Greener Pastures: Personal Finance http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/comment-page-1/#comment-4107 Blog-O-Rama: Finance and Frugality Blogs | Greener Pastures: Personal Finance Thu, 04 Dec 2008 13:54:16 +0000 http://www.thefinancialblogger.com/?p=974#comment-4107 [...] Financial Blogger wonders if the Dogs of the Dow have had their day, and the Dividend Growth Investor discusses why companies should pay [...] [...] Financial Blogger wonders if the Dogs of the Dow have had their day, and the Dividend Growth Investor discusses why companies should pay [...]

]]> By: Carnival of Personal Finance, Cyber Monday 2008 Edition | Mighty Bargain Hunter http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/comment-page-1/#comment-4065 Carnival of Personal Finance, Cyber Monday 2008 Edition | Mighty Bargain Hunter Mon, 01 Dec 2008 06:05:57 +0000 http://www.thefinancialblogger.com/?p=974#comment-4065 [...] Financial Blogger wonders if the Dogs of the Dow have had their [...] [...] Financial Blogger wonders if the Dogs of the Dow have had their [...]

]]> By: Weekly Dividend Investing Roundup - November 29, 2008 » The Dividend Guy Blog http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/comment-page-1/#comment-4051 Weekly Dividend Investing Roundup - November 29, 2008 » The Dividend Guy Blog Sat, 29 Nov 2008 11:02:34 +0000 http://www.thefinancialblogger.com/?p=974#comment-4051 [...] Total dogs of the dow [...] [...] Total dogs of the dow [...]

]]> By: The Financial Blogger http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/comment-page-1/#comment-4009 The Financial Blogger Tue, 25 Nov 2008 10:54:17 +0000 http://www.thefinancialblogger.com/?p=974#comment-4009 Justin, on the other side, there is a really simple way to make money with stocks: buy ETF or index funds on a monthly basis for 15-20 years. Do you know several people that do it? Justin,

on the other side, there is a really simple way to make money with stocks: buy ETF or index funds on a monthly basis for 15-20 years. Do you know several people that do it?

]]> By: Justin @ FixThePig http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/comment-page-1/#comment-4005 Justin @ FixThePig Tue, 25 Nov 2008 04:30:41 +0000 http://www.thefinancialblogger.com/?p=974#comment-4005 Thanks for the good read. I think that any investing strategy this simple must have a catch; wouldn't everyone simply be putting money away via this technique and beating the market? I really like the article and plan to do some more research on the topic. Thanks again Thanks for the good read. I think that any investing strategy this simple must have a catch; wouldn’t everyone simply be putting money away via this technique and beating the market?
I really like the article and plan to do some more research on the topic. Thanks again

]]> By: The Financial Blogger http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/comment-page-1/#comment-4003 The Financial Blogger Mon, 24 Nov 2008 22:55:53 +0000 http://www.thefinancialblogger.com/?p=974#comment-4003 Praveen, You bring an interesting point. We should actually follow the strategy for a few years in a row. However, when I look at hedge funds that should outperform during high volatility, they have been less profitable since there are more players on the same trend. Praveen,
You bring an interesting point. We should actually follow the strategy for a few years in a row.

However, when I look at hedge funds that should outperform during high volatility, they have been less profitable since there are more players on the same trend.

]]> By: Praveen http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/comment-page-1/#comment-4002 Praveen Mon, 24 Nov 2008 21:53:47 +0000 http://www.thefinancialblogger.com/?p=974#comment-4002 You can't judge any strategy by one year. So what if it underperformed the Dow this year? It probably underperformed during some of the years between 1975 - 2000, even though it won out over time. Simple things like the "Dogs of the Dow" work because, even if they are simple to understand, human nature makes it very difficult to follow - because of the volatility. What happens with the "Dogs of the Dow" is that someone writes a new article about it, it gets extra popular, money gets invested, then it underperforms a couple of years, a lot of the new investors bail out, and then it starts working again. You can’t judge any strategy by one year.

So what if it underperformed the Dow this year? It probably underperformed during some of the years between 1975 – 2000, even though it won out over time.

Simple things like the “Dogs of the Dow” work because, even if they are simple to understand, human nature makes it very difficult to follow – because of the volatility.

What happens with the “Dogs of the Dow” is that someone writes a new article about it, it gets extra popular, money gets invested, then it underperforms a couple of years, a lot of the new investors bail out, and then it starts working again.

]]> By: » The Financial Blogger | Dogs of the Dow; The End of A Great … » Dow Jones Stock Investing http://www.thefinancialblogger.com/dogs-of-the-dow-the-end-of-a-great-investment-strategy/comment-page-1/#comment-3999 » The Financial Blogger | Dogs of the Dow; The End of A Great … » Dow Jones Stock Investing Mon, 24 Nov 2008 12:26:22 +0000 http://www.thefinancialblogger.com/?p=974#comment-3999 [...] market news by unknown « Indian Stock Daily Reports (Tirumala Sec.,) Forex and Dow Jones recommended levels [...] [...] market news by unknown « Indian Stock Daily Reports (Tirumala Sec.,) Forex and Dow Jones recommended levels [...]

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