The "dogs of the Dow" strategy postulates that the ten highest-yielding stocks will outperform, or at least outreturn, the index as a whole.
Q1 2020 hedge fund letters, conferences and more
A good stress test for the most nearly analogous times is to examine what happened in 2008 and 2009.
The "original" 2008 and 2009 "dogs" underperformed the whole index.
Properly reconstructed "dogs" groups would have outperformed in those years.
Having touted the merits of the "dogs of the Dow" strategy, we put forth one major cautionary. It can be misapplied, especially in parlous times like these.
The COVID-19 virus has no real precedent, but the temporally closest approximation to "parlous times like...
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