The Dogs of the Dow is an old investment strategy that targets this year’s losers as potential winners for next. The idea is that cyclical stocks like the Dow components ebb and flow over time; buying them when they are down should provide a good return over time. Technology stocks are also cyclical, ebbing and flowing with economic conditions, suggesting the Dogs theory can be applied to them. Because economic tailwinds are expected to form in 2025 as lower interest rates combine with incoming President Trump’s business-friendly policies, it is a good year to expect cyclical semiconductor tech stocks like GlobalFoundries (NASDAQ: GFS), MicroChip Technologies (NASDAQ: MCHP), and Intel (NASDAQ: INTC), to rebound.
