The following is the breakdown of the Dogs of the TSX (here) in week 34, compared to other fundamental ratios.
In the 34th week, the Toronto Stock Exchange has a year-to-date change of –2.74%. On the whole, low yield is suffering while high yield has the top ten beating the TSX. Meanwhile, the high p/e and high p/b are crushing the index on a year to date basis. Low p/e and low p/b, fundamental ratios that you’d expect to do better, are not cooperating with the thesis to buy based on low fundamental values.
On July 16, 2020, we presented a list of the top ten high p/e ratio stocks. We selected the high p/e ratio stocks due to their obvious success this year and their relative consistency over time in the Dogs of the Dow strategy.
The chart below shows the performance of the July 16, 2020 stocks relative to the index.
After one month’s worth of trading days, no single group is exceeding the gains in the Toronto Stock Exchange.
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