Dogs of the Dow

Dogs of the Dow is an investment strategy that picks the highest yielding DOW 30 stocks. Current list is at this link. The strategy hit an iceberg when the then high yielding bank stocks blew up. My favorites on the current list are MCD and JNJ. As always, I am not offering investment advice, just offering an opinion.

Investment themes often go in cycles. What worked one year, stops working the next. What was a big loser sometimes turns around.

Readers know that I see the popular press mostly as a contrary indicator. When I see blaring headlines or talking heads on TV warning about the dangers of a certain asset class, it is often a low risk time to go long, or sell some puts because downside is limited. When there are headlines about huge profits, past, present, and future, it is often time to short or at least hedge.

I recently read an article in a local newspaper saying that U. S. tech stocks are going to remain strong, gold and emerging markets are high risk. If anything that kind of article makes me want lean the other way, long gold, long EEM, short tech stocks. As always, one article, one indicator doesn't mean too much, but when lots of popular pundits start saying the same thing, it is opportunity time.