Search Results for: Charles Dow

Dow’s Theory on Values and Information

“Wall Street offers many opportunities to those who know values and possess some capital. But until people learn that some stocks are cheap at $200 per share an others dear at 2 cents per share, and until people learn that … Continue reading

Gilead Downside Targets

Gilead has the following downside targets:

Dow’s Theory on Voting and Weighing

In the short run the market is a voting machine, In the long run it is a weighing machine “Whether the market goes up or down a few points in any one month does not alter the fact that if … Continue reading

Dow Theory, This Is Not

Dow Theory is only a theory.  Therefore, it is necessary to take all indications with a tremendous grain of salt.  However, it has been our endeavor to determine the qualitative nature of the work as presented by anyone who writes … Continue reading

Dow’s Theory on the Role of Dividends and Earnings

Dividends are a reward after earnings have been applied to improving prospects “It may be said that only a part of these gains in earnings can be fairly credited to dividend accounts.  That is true, because it has been deemed … Continue reading

Dow’s Theory on What exactly is an Industrial Stock

Charles H. Dow defines what Industrials stocks are “The stocks of trust companies and banks are simply industrial stocks… (Dow, Charles H.Wall Street Journal. Review and Outlook. October 12, 1900).”

Dow’s Theory on Growth

Charles H. Dow says slow and steady wins the race “Confidence has to be earned and has been truthfully pronounced a plant of slow growth (Dow, Charles H. Wall Street Journal. Review and Outlook. October 12, 1900).”

Dow Theory

On September 30, 2013, we posted our Dow Theory analysis.  In that assessment, we acknowledged that our June 2013 review of Dow Theory was incorrect.  Additionally, we pointed out the importance of using Dow Theory as an asset allocation tool … Continue reading

Dow Theory: The 50% Principle

The following from Richard Russell’s Dow Theory Letters is what we believe to be one of the most valuable examples of Charles Dow’s 50% Principle in action.    “I am publishing this arithmetic chart of the D-J Industrials (high and low … Continue reading

Dow Theory on Marvell Technology Buyout Rumors

Today the price of Marvell Technology increased +8.49% after news of KKR & Co. having acquired 5% of the chipmaker.  According to Bloomberg News: “KKR & Co. (KKR) has acquired almost 5 percent of computer chipmaker Marvell Technology Group Ltd. … Continue reading

Dow Theory: Where Does Investment Growth Come From?

Charles H. Dow once said, “the growth of the business of the country accrues on the old stocks.” We thought we’d compare this idea of Dow’s with the portfolio of Warren Buffett to see how accurate this concept might be.  … Continue reading

Dow Theory Q&A

Reader BlueIce comments (found here): “So for the past four years, the NYSE is up but volume down…What is the root cause, if any? Bank Bernankski ?” Our Response: While there is considerable belief that the Federal Reserve has been … Continue reading

Dow Theory: Secular and Cyclical Markets

We often mention the concept of secular and cyclical markets in our discussion of Dow Theory.  So far, we believe that we’re in a secular bear market owing to the fact that the Dow Jones Industrial Average and Dow Jones … Continue reading

Dow Theory on Fair Value

The purpose of this article is to demonstrate how Dow Theory approaches the question of the fair value of a stock. Most investors often hear of an analyst giving a fair value for a stock. Seldom is there ever a … Continue reading

Dow Theory Update

On May 19, 2012, we said that the bear market rally had ended (found here).  In our view, we believed that the Dow Jones Jones Industrial Average would not exceed the high of 13,279.32 set on May 1, 2012.  The … Continue reading