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The Daily Dow LEXINGTON, KY. (September 12): The market got yet more evidence that the inflation doom-and-gloom prophecies are off the mark. Today's Producer Price Index (a measure of inflation at the wholesale level) was tamer than most investors had expected.
The benefit, of course, is that it lowers the probability that the Federal Reserve will have to raise interest rates at the next Open Market Committee meeting in twelve days. And that, of course, is cheering news for the Bulls in both the bond and stock markets.
The Foolish Four, however, rested on yesterday's laurels a bit and was basically flat for the day. Chevron and Kodak slipped a bit, offsetting modest gains in 3M and DuPont. (Even though Imation also posted a gain, it's such a small portion of the portfolio, it doesn't carry much clout.)
For those of you new to the Dow Approach, keep in mind that this model portfolio was begun on January 2. So the stocks we follow here will be different from those in the Fool Portfolio, which updates its Dow holdings every August, or the current list of Dow Approach stocks you'd choose if starting or updating your portfolio today. That current list is found at the front screen to our Dow Dividend Approach area. The order of that list is updated daily and the profile you'll see if you click on any of the stock names is updated each weekend.
On a final note, confusion abounds surrounding the Beating the Dow variation I proposed in the Fribble called "Another Dow Acronym?" What's the confusion about? The name, of course, or in this case, the lack thereof. Because of all the variations we discuss, it makes sense for each one to have a decent name to distinguish it from the myriad others. My facetious suggestion of the Dynamic Duo doesn't work too well because DD is also the symbol for DuPont, and besides, the approach isn't limited to two stocks anyway. MF Sandy began calling it the RS2, or RS5, or RS-however many stocks you include in honor of my initials, but the confusion with Relative Strength makes this acronym awkward.
Right now I see two possibilities and I put it to the readers to decide. One possibility is to call it the Motley2 (or Motley4 or whatever). The other possibility is MF Sandy's recent suggestion to call it the Unemotional Value approach (UV), since it is both a Value approach and my work with models is geared towards Unemotional Investing (the working title of the book I'm planning). If we chose the Unemotional Value name, it makes sense to name my new Growth model the Unemotional Growth approach (UG) as well, but that's yet another issue. See how democratic we are? You decide Fools, either by e-mailing me (I'll regret saying that), or if you're on AOL, by posting in the BTD folder. Results to be announced soon!
Transmitted: 9/12/96 Today's Dow Numbers
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