From: Gary Miller (garymiller@starband.net)
Date: Wed Jun 11 2003 - 17:49:10 MDT
This system claims to have averaged 17.7% annual return since 1973. And
I don't think you'd say that it exceeds average risk! Although
dividends in the past were taxed with the president new tax bill getting
passed these stocks whould be even more attractive. As the baby boomers
retire more will look to these dividends as supplementing their social
security. I wish I had followed this system instead of being greedy and
investing exclusively in technology stocks!
>> From http://www.dogsofthedow.com/
Looking for a simple strategy for selecting high dividend yield Dow
stocks for your investment portfolio? Try Dogs of the Dow. Read on and
you will discover a strategy that would have given you a 17.7% average
annual return since 1973! That's not bad, especially considering that
the Dow Jones Industrial Average overall return was 11.9% during that
same period. (As reported in U.S. News & World Report, July 8, 1996)
And what has happened lately...
During the tech bubble of the late 90s, the Dogs of the Dow was up 28.6%
in 1996, up 22.2% in 1997, up 10.7% in 1998, and up 4.0% in 1999. During
the difficult bear market years of 2000 - 2002, the Dogs of the Dow was
up 6.4% in 2000, down 4.9% in 2001, and down 8.9% in 2002, and that was
enough to significantly outperform the Dow, S&P 500, and Nasdaq.
-----Original Message-----
From: owner-extropians@extropy.org [mailto:owner-extropians@extropy.org]
On Behalf Of gts
Sent: Wednesday, June 11, 2003 4:40 PM
To: extropians@extropy.org
Subject: RE: Investing
Brian Atkins wrote:
> Here's one example, there are others out there:
>
http://www.kc.frb.org/PUBLICAT/ECONREV/PDF/4q00shen.pdf
There is no shortage of people who believe they have a theory for
beating the market. The P/E ratio theory (buy when P/E is low and sell
when P/E is
high) is as old as the hills. It doesn't work after adjusting for risk.
Unfortunately, nothing works for beating the market after adjusting for
risk.
There are on the other hand a million ways to beat the market averages
if you're willing to assume more than average risk.
-gts
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