Beating the Dow With Bonds : A High-Return, Low-Risk Strategy for Outperforming The Pros Even When Stocks Go South

These days, however, O'Higgins is less concerned about beating the market than surviving it. In Beating the Dow with Bonds, O'Higgins considers the wild valuations of today's stock market and sees the specter of a sharp and steep decline. To face this inevitable selloff, O'Higgins offers a survival strategy that involves annually allocating assets among stocks (Dow Dogs), T-bills, and T-bonds. While most members of the baby-boom generation know how stocks work, they'd be hard-pressed to explain the arcane world of bonds. O'Higgins explains them admirably. Had you followed O'Higgins's new system for the last 30 years, which saw six bear markets, your portfolio would have enjoyed an average annual return of 23.77 percent versus 18.03 percent with his Dow Dogs portfolio and 11.77 percent with the DJIA.

O'Higgins is no Chicken Little--rather, he's a market contrarian with a proven and profitable track record. If you think the stock market will go up forever, then look elsewhere for advice. But if you believe in gravity, then get this book and read it soon. Highly recommended. --Harry C. Edwards

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All Customer Reviews
Average Customer Review:
1 of 1 people found the following review helpful:

Good INvesting Advice for Low Interest Rate Cycles, 2006-08-01
Zero coupon bonds are the bonds spoken of in the book's title. Zero coupon bonds do well in falling interest rate and stable, low interest rate investing environments as we had 90% of the time from 1982 to 2004. Now is NOT the time to use this book's advice, wait until interest rates fall again (2010??).
but it is true, by not owning any stocks O'Higgins outperformed the greatest -and longest- bull market in history.


1 of 4 people found the following review helpful:

A sad waste of paper - babbling brooks are better, 2004-09-08
Having read many books on various financial subjects, this one is on my list as one of the top 10 wastes of time. In fact I am only writting this to hopefully save you time! Warning! When the reviews are from annonymous 'a reader' be suspicious!


1 of 2 people found the following review helpful:

Interesting...but confusing, 2003-08-14
I agree with much of what has already been said as far as the amount of filler and the editorial glitches. And can anyone figure out the last chart -- table 11.1? These numbers make no sense and don't even correspond with the info on table 9.1. I began the book with some excitement but ended up feeling very uncertain about the method.


7 of 8 people found the following review helpful:

Profitable, Pragmatic Advice for All Investment Scenarios, 2001-10-19
This is one of the few stock market books from the 1990s that will be read and appreciated many years from now. While silly stuff like "Dow 36,000" & Harry Dent quickly withers away, O'Higgins advice gains credibility every day in this apparently multi-year bear market. Several web sites (beartopia dot com & others) mention this book. Perhaps the book's title should have substituted "zero coupon bonds" for the word "bonds." Do look up the authors corrected list of investment steps here at Amazon, however, do not let the slightly sloppy editing deter you from learning this powerful investment advice. The more knowledgable one is of the market, the more one appreciates O'Higgins and his two works. This book's advice works in bull and bear markets.


2 of 6 people found the following review helpful:

Not very good, but...., 2001-07-27
The book was not very well written, and why he felt the need to devote 70 pages describing in copious detail all 30 of the Dow stocks is beyond me. However, his 30 year zero-coupon analysis does have something going for it, and the inflation rate is a good predictor for a change in asset allocation.

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