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.
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Foreign tourist arrivals in India will cross pre-pandemic level in 2024
- Upcoming smartphones launching in India in May 2024
- Markets rebound in early trade amid global rally, buying in ICICI Bank and Reliance
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- Rupee declines 5 paise to 83.43 against US dollar in early trade