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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76111  
Subject: Re: The Anti-Motley Fool viewpoint Date: 2/13/1998 6:16 PM
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John,

<<That said I want to warn novices how dangerous it is to follow any of the various DOGS strategies being purported here. These investment schemes are all back tested and have NO predictive power.>>

I, for one, would like to know of any investment theory that has predictive power. You imply that somewhere such a beast exists. Ain't so, friend. All any of them have is history to look at, and that's back-testing no matter how you cut it. Whether one uses a Dow strategy or an asset allocation strategy or an index strategy or whatever, it is all just theory based on history. In short, if you believe in the theory, then take your chances and use it. But dangerous? Hardly. Not with over 35 years of data backing it up. That's fairly convincing data that a reasonable person with an understanding of the risks associated with ANY investment strategy can use to make a rational decision. If you don't like it, don't use it. If you do like it, employ it. The choice is yours. But it's no more dangerous than any other stock strategy. And on a risk-adjusted basis less volatile than most, as RayVT's excellent analysis showed.

Regards…..Pixy
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