dogs of the dow

[actuary10]

Has anyone tried dogs of the dow strategy in stock investment?

[FSAwannabe]

what exactly do you mean? this has been a strategy that has been around forever.

[actuary10]

Oh sorry, I guess I wasn't been too clear. I just wanted to know what people thought of the idea.

[Buck Fama]

Here's a better stock system:

Be short the market in a year ending in "7", on the Monday of the SOA Annual Meeting in October. The last 2 times this occurred, on the Monday of the SOA meeting in October 1987 and October 1997, the market crashed severely both times. So watch out on 10/15/2007!

[Dr T Non-Fan]

If it works, then the market will have corrected for it already.

Sometimes, stock prices of companies go down, and then they go down again.

[FSAwannabe]

If it works, then the market will have corrected for it already.

Sometimes, stock prices of companies go down, and then they go down again.

Assuming the market is at least weak form efficient.

[Dr T Non-Fan]

Dow companies do trade a lot.
There might not be enough rational investors, though.

Another question: When does one invest more heavily in the dogs? Daily? Monthly? Quarterly? What day of the year is most optimal? How long should one invest for? How often should one invest, what with transaction costs added in?