Performance

Small annual return differences produced large differences over decades in the cited Dow Theory comparison. The article emphasizes drawdown reduction as a major advantage of Dow Theory. Schannep's interpretation of original Dow Theory outperformed buy-and-hold Dow Industrials over the presentation's 58-year database period. Classical Dow Theory outperformed buy and hold in the cited 1953-2022 Dow Jones Industrial Average Total Return Index test. Dow Theory for the 21st Century produced higher return and lower drawdown than classical Dow Theory and buy and hold in the cited 1953-2022 comparison. The article cautions that early 21st-century performance results are back-tested because the required data and indicator recognition did not exist for the full period. The 21st-century rules produced a hypothetical 14% annualized return when retrospectively applied from December 31, 1953. Hulbert tracked related timing indicators and found several portfolios ranked highly and outperformed buy and hold.