Premium: Revisiting Dow Theory after share prices smashed again, volatility surges

Dow Theory is an equity investment thesis introduced over a century ago by Charles H Dow, co-founder of the Wall Street Journal. He theorised that asset prices move in clearly defined cycles. And it was important for investors to understand what stage of the cycle the markets were in before executing buy or sell orders for stocks.

The video above explains the basics and also points out Dow Theory has its critics. Mostly because of changes in the economy. But the broad principles based on behaviour by market participants are still valid. Which gives us two points to consider in the context of your current investment strategy.

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