Investing Articles

Beating the Dow with Bonds, is 1/3 of an extremely successful asset allocation

strategy outlined in a book by the same name.

Numerous financial studies conclude that proper asset allocation, which is another name

for money management, is responsible for more than 85 percent of investment portfolio

results. Specific investment selection (buying one particular stock or bond over another)

accounts for less than 15 percent.

In 1991, Michael B. O’Higgins, one of the nation’s top money managers, revolutionized

the investment industry by asserting that investors could beat the pros 95 percent of

the time by putting 100 percent of their money into the “dog” stocks of the Dow. His

book, Beating the Dow, became a bestselling investment classic and spawned an

industry of websites and mutual funds, elevating the theory to legendary status.

In 1999, with equities dangerously overvalued and stock prices at an all-time high, the

author turned his attention to bonds, providing a proven system for achieving the lowest

risk, highest returns in, not only the then current chaotic stock market, but in any

market.

Requiring less than five minutes per year, investors with as little as $5000 could beat

the pros 95 percent of the time, regardless of market conditions.

Utilizing a simple, proven method for mastering the market by determining the best

asset allocation investment choices among stocks, bonds, and riskless cash equivalents,

the Beating the Dow with Bonds method provides a safer, more reliable way to beat

the Dow, and outperform the pros, even when stocks go south.

A wake-up call for the equity obsessed, and an invaluable guide for the rational investor.

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