Predictably, we've started the year with many columns that tell us to buy stocks that were sure-fire losers last year. These columns rely on an inverted rule of physics, which states that what goes down must come up. And so a barrage of "Dogs of the Dow" type stories ensues. Magazines are soon populated by 800-word admonitions to buy the stinkers of 2007's stock market.Now hear me out: There is nothing innately wrong about sorting through beaten-up stocks for future winners. Every contrarian -- and every good investor is a contrarian -- does just that. But the key is that an article trumpeting a Dog of 2007's hope for a turnaround must be based on solid evidence or a detailed supposition. The savvy investor has to see columnists go further than blind trust in that inverted rule of physics.
They Just Don't Get Buying Dogs