Instant Alert: 25 'dogs of the S&P 500' that could outperform in early 2017

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25 'dogs of the S&P 500' that could outperform in early 2017

by Prashanth Perumal on Dec 29, 2016, 2:49 PM

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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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