There’s Nothing Positive To Say About The Dow, Here’s Why

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-936957818&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/936957818/960×0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; (Photo by Spencer Platt/Getty Images)

&l;p class=&q;tweet_line&q;&g;When you look at the thirty stocks in the Dow Jones Industrial Average it looks like &a;lsquo;The Crash of the Titans. &a;rsquo;

&l;strong&g;Here&a;rsquo;s A Dow Scorecard&l;/strong&g;

&l;img class=&q;size-full wp-image-56611&q; src=&q;http://blogs-images.forbes.com/investor/files/2018/03/ScorecardDow30032318.jpg?width=960&q; alt=&q;&q; data-height=&q;534&q; data-width=&q;730&q;&g; Scorecard For The Dow 30

&l;strong&g;The Dow Jones Industrial Average&l;/strong&g; is in correction territory, down 11.6% below its all-time intraday high of 26,616.71 set on Jan 26. The average is down 4.8% year-to-date.

&l;/p&g;&l;ul&g;&l;li&g;Nine components set new year-to-date lows on Friday: Disney, GE, Home Depot, 3M, Procter &a;amp; Gamble, United Technologies, Verizon, Walmart and ExxonMobil.&l;/li&g;

&l;li&g;GE and WMT are in bear market territory, down 32.6% and $22.3% from their 2018 highs, respectively.&l;/li&g;

&l;li&g;Only five stocks are not in correction territory: Apple, Cisco Systems, Intel, Nike and Visa.&l;/li&g;

&l;li&g;The three best performers year-to-date are Cisco, up 10.8%; Boeing, up 8.8% and Intel, up 6.9%.&l;/li&g;

&l;/ul&g;

These statistics make it impossible to recommend new long-term investments now. During earnings season, which begins in mid-April, I will have trading strategies, but it seems unlikely that new longer-term investments are possible, unless you choose among the eight &a;lsquo;Dogs of the Dow&a;rsquo; for their dividends. Next week these will be profiled.

In the fourth quarter, my theme was to reduce equity holdings by 50%. As 2018 began, I recognized that there would be additional upside, but I viewed such as a &a;lsquo;sell on strength&a;rsquo; opportunity.

Now there is a risk that we will have a full-blown bear market for stocks.

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