Mark Hulbert of Marketwatch: The Transports have been the stronger of the two benchmarks, and it is widely considered to be a leading economic indicator. Read the article HERE.
The job of the financial media is to make sure that you continue to watch more financial media. The more people that watch, the more the financial media gets to stay in business. This past week is a great example of that. Towards the end last week, many pundits were talking about an impending Sell Signal while watching the Dow Jones Industrial Average Index drop. However, we were he Dow Jones Transportation Index rallying quite nicely.
Listening only to the noise of the financial media is a recipe for disaster. It is important in a world focused on the noise to have a strategy for investing that is academically tested and time-proven to help increase returns over the long-run. The Dow Theory has been around for over 100-years for a reason. It has stood the test of time by looking at our track record, and has assisted investors with reading the long-term trend of domestic equities.
Don’t get distracted! Know the strategy, follow our newsletter, and invest wisely!
There has been renewed interest in the Dow Theory since Jack Schannep presented his research to the Market Technicians Association that showed Dow Theory produced an excess return of 1.5% per year (from 1953 thru 2011) versus a buy and hold strategy. His presentation attracted a whole new generation of Dow Theory enthusiasts. Read the article HERE.