This is a special contribution article by Prof. Grant Henning based on his published research on the BLM technical theory. The model and comments are expressly based on his own proprietary methodology and forecasts.
Comparative Analysis of Dow 30 Stocks
There is generally high interest in the performances of the 30 large-cap stocks comprising the Dow Jones Industrial Average. This is because these stocks are perceived as low risk, highly liquid, reliable holdings for long-term investors, pension funds, endowments, and hedge funds. Added to their promise of steady, low-volatile growth, is the prospect of dependable dividends. These benefits make these stocks ideal holdings for large-scale, low-risk investors.
Aggressive individual stock traders often shy away from these stocks because of the perception that such stocks are unlikely to produce the same high levels of growth that are available through some more volatile small-cap and micro-cap stocks. However, it will appear below that this perception is not always accurate. Clearly, some Dow 30 stocks do outperform many smaller cap stocks on the other major indices.
Table One: Year-To-Date Appreciation Of Dow 30 Stocks (March 7, 2019)
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