To Find Hotter Funds, Go With The Winners -- and the Losers

Discussion in 'Share Investing Strategies, Theories & Education' started by Jane M, 15th Jan, 2007.

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  1. Jane M

    Jane M Well-Known Member

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    To Find Hotter Funds, Go With The Winners -- and the Losers

    You may have heard about "Dogs of the Dow" - buy the worst performing stocks of the last year, and hold for at least one year.

    This is a new strategy - buy the best or worst performing funds of the past year, and hold for a year. Article by Jonathan Clements at the Wall Street Journal Online
    - WSJ.com - Login.

    "If you buy last year's top-performing stock funds, you have a good shot at earning market-beating results over the next 12 months. What if you buy last year's worst performers? That, too, could earn you superior returns."

    Interesting strategy - avoid the middle performers and go for the best or worst.
     
    Jane M, 15th Jan, 2007
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  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    hmm ... I'd want to put some very heavy qualifications on that.

    It would be interesting to do my own analysis of a "worst fund" selection technique. Unfortunately I don't have sufficient data available yet to consider doing this in any detail.
     
    Simon Hampel, 16th Jan, 2007
    #2