A boring 18 month counter-trend experiment with Dow Stocks
Updated
The selloff appeared to have reached a recent low defined by liquidation, high anxiety,
hitting potential short to medium term lows by 2:30 PM on March 23, 2020.
For the longer term position trader who would be no different than a long term investor in large cap companies, The prices for the week ended March 25, 2020, may have been an opportune window of entry given the levels of volatility and broad liquidation across most asset classes.
positions were taken by the close of March 24 and March 25, 2020, Q1 2020
A small selection of Dow Dividend giants was chosen for this experiment in counter trend positions,
which will be concluded in 18 months, or about September 2021, the end of Q3 2021
These will be the beneficiary of any recovery effort which will take time to unfold
if there is a systemic risk, it would be seen last among the largest enterprises,
Disney's recent 1 yr credit financing hints that the large incumbents may succeed as both speculative positions and investments
The lineup includes:
Home Depot
Intel
Microsoft
American Express
Visa
Goldman Sachs
Apple
Disney
3M
hitting potential short to medium term lows by 2:30 PM on March 23, 2020.
For the longer term position trader who would be no different than a long term investor in large cap companies, The prices for the week ended March 25, 2020, may have been an opportune window of entry given the levels of volatility and broad liquidation across most asset classes.
positions were taken by the close of March 24 and March 25, 2020, Q1 2020
A small selection of Dow Dividend giants was chosen for this experiment in counter trend positions,
which will be concluded in 18 months, or about September 2021, the end of Q3 2021
These will be the beneficiary of any recovery effort which will take time to unfold
if there is a systemic risk, it would be seen last among the largest enterprises,
Disney's recent 1 yr credit financing hints that the large incumbents may succeed as both speculative positions and investments
The lineup includes:
Home Depot
Intel
Microsoft
American Express
Visa
Goldman Sachs
Apple
Disney
3M
Note
surprisingly, or maybe not surprising, Goldman Sachs is up in the neighborhood of 35+% since this boring vanilla Dow experiment was begun in March 18, 19.this pales in comparison with story stocks and recovery narrative stocks but it's not bad for those who don't want to be stuck in cash.
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