25 'dogs of the S&P 500' that could outperform in early 2017

If you are looking to make money in the stock market next month, your strategy should be to buy the S&P 500's worst-performing stocks of 2016.

That's according to Nautilus Investment Research which measured the "Dogs of the S&P Effect," or "the tendency of the prior year's laggards to outperform the prior year's leaders."

The laggards tend to outperform leaders by an average of 4.84% in January "as tax loss selling abates and bottom fishers enter the scene," says Nautilus.

However, Nautilus warns, "the effect is very short-lived and reverses completely in February" when laggards tend to underperform leaders by an average of 4.76%.

The 25 biggest laggards of 2016, according to Nautilus, are presented below.