I try to update the portfolio selections every couple of weeks. Things can change quickly. For example, if I were to update the portfolio today, GM would not be among the underdogs, it has rebounded sharply since becoming our top ranked stock. If you wanted to make a purchase today using this strategy, go to www.dowunderdogs.com, write down the top ten stocks as shown in the 2004 closing ratio tab. Then go to Yahoo Finance and find the lowest 5 p/e ratios among those ten stocks. They constitute our 5 Dow Underdogs.
Which also shows why it make sense to use this as a mechanical system. I did not add GM to my portfolio as I still am pessimistic about it's future. On the other hand, it has outperformed the underdog stocks I did buy.
