This is not the Dogs of the Dow Theory, as that does not work as well as what I am talking about. Also, it does not time the entry. The Dogs made I think about 3% last year, whereas this approach as per my prior posts made 19.2%. CAT was one of the stocks I had, but those other two were not. There are better valuation numbers than the Dogs theory suggests.
Also, Jan is not a good time generally to get long stocks, which is another flaw of the Dogs Theory, as it resets it’s stocks at a time where going to cash is usually a better decision.
Unfortunately, this is really not the right forum for this type of dailogue. I am sorry for bringing this up, and thankful to Rich for not sensoring it. It is off topic. I have given you enough hints for you to best research on your own whether this approach suits you.
You seem tenacious so go for it. Best of luck.
As to commodities, I am a professional futures trader so I always have thoughts on that. However, again it seems to be off topic. I do not want to abuse the privelege of being in here chatting.
One thought in general which applies to all things such as real estate right now. Too many people chase the latest hot hand, such as housing right now. In general, these hot commodities are no different. Many of them are very extended now. The time to have been there is past, so there is alot of risk now. You need to be there before the herd.
Long term I do not know. I work in 6 months or less time windows in trading so my long term views are worthless.
Cash is a good place right at the moment as per what we discussed before.
