# Prof. Stephen Brown's research on the Dow Theory is featured

1 Faculty News February 3, 2015 ![MarketWatch logo](/sites/default/files/styles/246w/public/assets/images/marketwatch%20logo.jpg?itok=pHUVfozf)>

Excerpt from [Marketwatch](http://www.marketwatch.com/story/the-dow-theory-is-now-flashing-a-sell-signal-2015-02-03) -- "Consider a study conducted in the mid-1990s by three finance professors — [Stephen J. Brown](http://www.stern.nyu.edu/faculty/bio/arun-sundararajan) of New York University, William Goetzmann of Yale University and Alok Kumar of the University of Miami. They fed Hamilton’s market-timing editorials from the early decades of the past century into neural networks, a type of artificial-intelligence software that can be 'trained' to detect patterns. Upon testing this neural network version of the Dow Theory over the nearly 70-year period from 1930 to the end of 1997, they found that it beat a buy-and-hold strategy by an annual average of 4.4 percentage points. Their study appeared in the August 1998 Journal of Finance."

[Read more](http://www.marketwatch.com/story/the-dow-theory-is-now-flashing-a-sell-signal-2015-02-03)