dow

Dogs of the Dow 2022

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Dogs of the Dow 2022 1

. I first heard of the Dogs of the Dow strategy back when Motley Fool was just becoming famous, largely based on the out-sized success of their investment in AOL as the Internet Bubble continued to swell. (Whew! There’s a lot of investing history, and investing lessons in that one sentence.) The Foolish Four was a supposed improvement on the Dogs of the Dow strategy. I never invested that way, and it turns out to have been a good move. As the year rolls over to 2022, there come the obligatory articles about which stocks are the 2022 Dogs of the Dow, and whether the Dogs of the Dow is a good investment strategy. So, I thought we’d take a quick look. What Is the Dogs of the Dow Strategy? The Dogs of the Dow is an investment strategy where an investor invests in the 10 stocks in the Dow Jones Industrial Average that have the highest dividend yield as of 12/31 on the first trading day of the year in equal amounts and then holds the stocks for the full year before repeating the process. The idea (which used to be true, but is less so these days) is …

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ANOTHER Stock Market Correction?

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correction stock market

Monday’s trading left the S&P 500 down a big chunk, and closing in on another stock market correction for the year. As we’ve talked about before, the stock market this year is very volatile moving up and down in big moves as investors, and their computer programs, make trades based upon how they think the economy will play out among the coronavirus issue. The most recent trend has been down. A Stock Market Correction The definition of a stock market correction is a decline of 10%. The catch these days is that the stock market peaks are often the result of a fast runup in the markets. As a result, the first three or four percent of any correction is nothing more than taking the top off of a potentially unwarranted wave that rose too fast. Check out my Acorns review So, here in we are in September facing down another correction for the market during 2019. As I write this, the stock market isn’t quite down enough to count as a recession, but it may very well get there later today, or even tomorrow. It is also possible the computer algorithms get tripped and start buying. Either way, the …

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Stock Market 2011 Results

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The results of the stock market for 2011 are basically flat. While the Dow Jones Industrial Average can claim a small gain, the S&P 500 Index ended 2011 with a small loss. Likewise, the NASDAQ ended down for 2011 as well. 2011 Dow Jones Up The Dow finished up for 2011 thanks in part to the makeup of the index. The stocks in the Down Jones Industrial Average contain only large U.S. companies. While financial companies make up a significant number of the stocks, their impact is limited because the Dow Jones Average is a price-weighted index. That means that higher priced stocks have more influence on the average than lower priced stocks. Most financial stocks have very low share prices these days, and as a result, their performance doesn’t drag as heavily on the average. Bank of America was the worst performer in the Dow having lost 58.3 percent for the year. The Dow Industrials finished up 5.5 percent for the year. That is three consecutive positive years for the Dow, although nobody is dancing in the streets over this year’s performance, where many components had flat or down years. The top 5 Dow stocks for 2011 were McDonald’s …

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