FYI: Following the worst year for its stock price GE, +0.13% since 2008, General Electric Co. has staged a rebound in the first week of 2018. The industrial conglomerate has risen for five straight sessions and is up 7.5% on the week, putting it on track for its biggest weekly percentage gain since November 2016.
The rebound plays into a longtime investing strategy known as the “Dogs of the Dow,” under which investors favor the biggest losers of the blue-chip average’s previous year, on the theory that they are poised to rebound. Because the Dow index comprises 30 of the economy’s biggest and most mature companies, many investors also view the dogs as offering higher dividend yields than the overall market.
GE was the Dow’s biggest laggard of 2017 by far, dropping nearly 45%. It was followed by IBM, which fell 7.6% over the course of the year. But now, with the first week of the new year nearly in the record books, those statistics have flipped: GE is the Dow’s best-performing component thus far this year, and IBM IBM, -0.02% is in second place, having risen 5.9%. Exxon Mobil Corp. XOM, -0.74% , which fell 7.3% over the course of 2017 as the blue-chip average’s third worst performer, has also outperformed so far this year, gaining 3.5%. The Dow DJIA, +0.36% overall is up 1.7% since the return from the New Year’s holiday.
Regards,
Ted
https://www.marketwatch.com/story/2018s-best-performing-blue-chips-support-the-dogs-of-the-dow-theory-2018-01-05/print2018 Dogs Of The Dow:
http://www.dogsofthedow.com/2018-dogs-of-the-dow.htm
