The simple ‘Dogs of the Dow’ strategy topped the market for a fourth straight year

Who let the dogs out? A Your personal camera obscura/Getty Images image

– Financial news covered by Quincy Quarry News with commentary added.

 

The simple ‘Dogs of the Dow’ strategy topped the market for a fourth straight year.

 

This classic value investing strategy has outperformed the markets for the past four years straight and seven out of the last 10 years.

 

What goes up usually also come down
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Additionally, the “Dogs of the Dow” investment approach does less badly than do most stock indexes in down markets and thus a definite plus given recent stock market upheaval.

 

Further advantages include that management fees for a “Dogs of the Dow” based fund are typically low to wicked low.

 

“Dogs of the Dow” calls for the purchase of the 10 Dow members with the highest dividend yield.

 

Up in smoke
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Unfortunately for Quincy taxpayers, the City of Quincy’s employee pension fund is redundantly – if not also unduly narrowly – diversified vis the placement of pension funds with a considerable number of what appear to be actively trading portfolio managers. 

 

Such not only increases management fees, in Quincy’s case its portfolio of placements of its employee pension funds have also pretty much under-performed the Dow Jones average since it begin its historic record setting bull market climb in the wake of the Crash of 2008.

 

Follow the money …
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In turn, when the City of Quincy’s pension fund is subjected to its triennial review by the Commonwealth of Massachusetts’ Public Employees Retirement Administration Commission, Quincy’s pensions actually funded level could drop to close to half of what it was when the Koch Maladministration first cane into office and so result in Quincy being among the bottom ten percent of municipal emmplyee pensions in Massachusetts. 

 

In turn, if such ends up where the chips fall for the City of  Quincy employee pension fund, Quincy could find itself arguably worse off than even the MBTA’s employee pension fund.

 

Even worse yet, local taxpayers are on the hook to make up the shortfall.

Source: The simple ‘Dogs of the Dow’ strategy topped the market for a fourth straight year