Thursday, December 4, 2014

Dow Theory Update for December 4: Why buy and hold is dead

Trends for precious metals and US stocks remain unchanged.

Zero Hedge reports that the average lifespan of US corporations in the S&P 500 has never been shorter. Now is down to a dismal 15 years:

Do you still believe that buy and hold for individual stocks works? This is why even when dealing with individual stocks, a Dow Theory filter (i.e. being out of all stocks when a primary bear market has been signaled) is a very sensible course of action.

The Dow Theorist


  1. Great point, the Dow Theory as a market filter is what I'm using it for!

    As always awesome work.


    1. Since show sincere interest in the Dow Theory, I encourage you to re-read the previous post: the non parametric nature of the Dow Theory puts it on a "golden league". Nothing to do with other tools to determine trends. It is like comparing a Ferrari with a Seat or Mazda.