Michael O'Higgins 1991 strategy proposed that allocation in the ten highest
dividend paying Dow components is an approach to beat the business cycle.
For us out performance is not just about dividend as a fraction of price but
also about absolute performance. A worst performing asset is a potential
out performer and vice versa.

Higgins made entry in his dividend strategy simple by specifying it as an
annual selection. The annual selection assumed a yearly cycle. Unlike annual
cycles, Jiseki performance cycles work over multiple degrees of time. So
entry for us is linked with the holding period (risk profile) of the
investor.  The entry for performance cycles can also be judged visually when
the Jiseki cycles turn up.

Now for us the other Dog of the Dow, ProShares Short Dow30 ETF is getting
ready to outperform. Not only it’s in the worst 20% among 1000 global
composite asset universe over an intermediate period but also the Jiseki
cycles are oversold. We anticipate a trading reversal soon on the DOG.

Mukul Pal, CMT, Orpheus Capitals, Global Alternative Research