Scanner's Amazing New Investment System

[Scanner]

I call it the "Dogs of the Sectors"

Here's the way I see it. There are basically 8 sectors (I am excluding technology and healthcare)

Domestic Large Cap
International
Domestic Small Cap
Bond (long term corporate)
REIT
Emerging Markets
Precious Metal

In the spirit of the Dogs of the Dow, why not have 4 funds and move money to what is underperforming or lagging the other markets?

4 funds to remain diversified yet move them at certain times.

Like right now, my international fund is up 35-40% for the year - I move it all into a REIT. Yeah, that's right - all!!! Sure. .. .it may slide a little more. . .you never figure out the bottom. . .but you have to admit real estate would be a pretty good buy right now, even if it slides a little more for a year or two.

What does the forum think?

Have I developed an amazing new system?

[humandraydel]

Have I developed an amazing new system?

Not really. You've just taken the concept of rebalancing to it's absolute extreme. Sounds dangerous to me. The problem is that international could continue to go up for another 2 years while real estate goes down for 2 more years. In that case, you could lose a lot by switching prematurely.

[jIM_Ohio]

The problem is some sectors may underperform for years, and those same sectors may only outperform for short periods.

Bonds and REITs come to mind.

Dogs of the Dow is an annual rebalance.

I've always thought a "dogs of the S&P 500" would be a good strategy as well.

[snafu]

OP: You have to be in your 20's and have steady nerves to follow Dog of Dow plan. Have you considered exchanged traded funds ie.
AIA, IFNA, IFEU,IFSM, NAREIT etc.
exchangetradedfunds.cc