Below is a chart of the performance of the Dogs of the TSX 60 from December 31, 2020 to April 5, 2021 (intraday).
The Toronto Stock Exchange has increased approximately +11.65% year to date. As a group, the Low yield category is crushing the high yield category. The top 5 and top 3 in the low price/book has exceeded the Toronto Stock Exchange by a wide margin.
In our January 3, 2021 posting, we said the following:
“…our personal bias is still with the Low Yield stocks however their performance isn’t as proven as the High P/B stocks..”
The top ten in the high price-to-book has exceeded the Toronto Stock Exchange by nearly double. At the time, we said:
“We’re looking to the High P/B stocks to lead the TSX on the way up and down. This means, if the market structure breaks down, the High P/B will lose more. Conversely, if the compressed value component is recognized in the TSX 60 for 2021, then the High P/B stock will be worth your while.”
We don’t understand the underperformance of the top 5, top 3, and 2,3,4 grouping for High price-to-book.
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