25 'dogs of the S&P 500' that could outperform in early 2017 by Prashanth Perumal on Dec 29, 2016, 2:49 PM Advertisement
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. 1. Endo International Ticker: ENDP Sector: Health Care Stock price: $15.67 2016 YTD return: -74.4%
2. First Solar Ticker: FSLR Sector: Information Technology Stock price: $32.62 2016 YTD return: -50.3%
3. TripAdvisor Ticker: TRIP Sector: Consumer Discretionary Stock price: $46.74 2016 YTD return: -45%
See the rest of the story at Business Insider |
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