Quote:
Originally posted by xxxinnovations
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There is a method, I have it in a finance book here somewhere.
Basically the guy says this:
The DJIA is our strongest benchmark of the entire stock market. He says almost everything is compared to the DJIA. "Beat the DOW" that's the goal. There are THOUSANDS of stocks to choose from, right? Well, since the dow is the big 30, and year, after year, the DOW has ALMOST always ended with strong eranings, why not just pick from the top 30? (by top, I mean the 30 companies that the dow has in it's index)
At the beginning of the year the Barron's puts out a listing that shows each stock in the DJIA and how well it performed. Well this guy, has a form that you enter all 30 stocks, and ther earnings/price ratio. He says pick the top 5 stocks that had the most earnings% and the lowest price. He says buy and hold those fuckers for a year, and see how you do.
He then has a chart that goes back since like the depression, and every year if you had used this method you'd have come out on top, except for years when the market as a whole was down.
Mrs. RedShoe and I follow Doug Fabian, and so right now we are in cash. We are building up for the next Bull run.