How Good is The Dow Theory?
by Bill Dunbar
I had just sat down at my desk in Advanced Design when Cliff walked In.
"Ya hear the news?" he asked.
"The rails confirmed yesterday!" He announced it like he expected me to stand up and cheer.
"Oh, yeah?" I was faking it—I didn't know what he was talking about, though I had a vague idea it was
something about the averages. Cliff was great on theory but I don't think he ever put a dime into the
market. I made up for him though by sticking my life savings into stocks without knowing a damn thing
about it. That was in 1954 when you didn't have to know much about the market to make money.
Well, it may seem strange, but I never really started researching various technical approaches until I
began writing articles. Oh, I guess I read a book or two along the way, but do you think I would take the
time to check out a theory for my own account? Uh-uh, I just couldn't be bothered.