The Dogs of the Dow beat the market in 2022. Here's how the list shapes up for next year

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The Dogs of the Dow strategy proved a winner again in 2022, as investors turned away from growth stocks and searched instead for value companies and dividends.

This year will be remembered by most investors as marking the start of a bear market, but it was also a big moment for the stocks some refer to as dogs. The Dogs of the Dow strategy proved to be a winner in 2022, as investors turned away from growth stocks and looked instead for value companies and dividends. Given the challenges facing the global economy in 2023, their run might not be over yet.

"The trades that worked in 2022 could continue to work in 2023. Nothing's changing as we turn the page in the calendar," said Kevin Simpson, chief investment officer of Capital Wealth Planning. One popular outlook for 2023 is for a rough first half followed by a rebound in the second half. That could mean that growth stocks catch up to value later in the year, but Simpson is skeptical that scenario plays out.

 

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