The Dogs of the Dow is a fairly simple investment strategy, you pick the 10 highest yield shares in the Dow Jones Industrial Average and put an equal amount of money into each of them. Adjust the portfolio once a year so that it once again has equal amounts in the top ten shares by yield.

Alan Brochstein of AnalystforHire is predicting the Dow drops to 1150 by the 2008 elections. His thought is that we are in a bear market after an impressive five year run. He doesn't think it will last long, but it will hit hard, retracing at least ½ of the gains in the S&P 500. From trough to peak, the rally was about 800 points over those 5 years.

It's weeks like these that remind me not to buy a stock all at once, and to focus on the long term and not to panic driven short term. You can get burned badly, especially when the market takes a dive right after you buy. Here is the proper way to buy a stock...