The Real "Dogs of the Dow?"

There is no sure thing in the stock market, but the Dow Jones Industrial Average has long been used as a bellweather index for investors. Even so, research by Pomona College professor Gary Smith shows that stocks dropped from the Dow average since 1928 have actually outperformed the stocks that replaced them. Smith says this bucks conventional wisdom by showing "out-of-favor stocks" generally outperform whatever happens to be popular at the moment.