In his latest article written for Alan Kohler's Eureka Report, Scott looks at the Dogs of the Dow approach to building an investment portfolio.

He comments that the strategy is built on the notion of "value" stocks; the idea that there might be a higher return for value or "out of favour" companies.  Scott discusses some academic research that looks at this concept of a value premium and suggests that the research provides evidence of such a phenomenon.

Scott concludes by commenting that investing in this manner is not a free lunch as there are periods where these stocks underperform and tend to have more volatile in their price movements.  He also looks at how one fund manager, Clime Capital, constructs a fund using the dogs of the dow strategy and some of the issues surrounding this fund.

Click on the following link to read Scott's article - Can market 'dogs' outrun the rest?