The strongest selling point for the Dogs of the Dow strategy: It has worked. In his excellent book
How to Retire Rich , Bear Stearns Asset Management's James O'Shaughnessy explained that a $10,000 investment in the Dow Dogs in 1952 would be worth $6.6 million by 1996, compared with $1.7 million for the same investment in the S&P 500. Beating the Dow helped popularize the Dogs of the Dow strategy. However, O'Higgins doesn't recommend the strategy now because he believes the market is entirely overvalued and that the economy is headed for a depression. We'll discuss more dire contrarian strategies that O'Higgins and others espouse -- think Newmont Mining ( NEM), for starters -- in future Financial Education columns.