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Wednesday, February 26, 1997
The Daily Dow FOOL GLOBAL WIRE by Robert Sheard LEXINGTON, KY. (Feb. 26, 1997) -- The old Greenspan magic took effect today as the Federal Reserve chairman delivered his semi-annual testimony before members of the Senate. In his usual deadpan manner, Greenspan warned the market of all the potential dangers facing us: inflation, "irrational exuberance," potential interest rate hikes, you name it. Naturally, the market reacted as one would expect, dropping 100 points before he even began his speech, thanks to the wonders of pre-released copies of his text. But should the Dow investors be worried? Why not? I'm a worrier by nature, so I'm worried whether Greenspan speaks or not. The real question, though, is should you act because of today's nervousness? And that question's easier to address: umm... No! The Dow Approach is one designed to be used in all market conditions, and it fares remarkably well in both strong and weak markets. So whether Greenspan is trying to fire a warning shot across the market's bow or not is irrelevant to our approach. You run the numbers, you buy 'em, and you sit on 'em for a year. Period! No exceptions, no special dispensations, no but-it's-different-this-times. Does that mean you're guaranteed a profit in 1997 or 1998? Of course not. No one really knows what's ahead, not even Greenspan. But historically, ignoring "the market" and investing in these virtually unsinkable and out-of-favor Dow stocks has been a plan with a record mutual funds and market timers would love to claim for their own. In company news today, it's splitsville. Both EXXON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: XON)") else Response.Write("(NYSE: XON)") end if %> and PHILIP MORRIS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MO)") else Response.Write("(NYSE: MO)") end if %> announced stock splits this morning. And DISNEY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DIS)") else Response.Write("(NYSE: DIS)") end if %>, perhaps trying to deflect some shareholders' ire at this week's annual meeting, announced a direct stock purchase plan for shareholders. From all accounts, it didn't exactly turn the heat down on Disney's top brass, but for DRiP investors, it was a nice addition to their arsenal of direct investment options. Meanwhile, 3M <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MMM)") else Response.Write("(NYSE: MMM)") end if %> continues is hot streak, tacking on another $3 a share today. (c) Copyright 1997, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool.	The Current BTD 10 1. AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %> 2. *International Paper <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %> 3. *Goodyear Tire <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GT)") else Response.Write("(NYSE:GT)") end if %> 4. *General Motors <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %> 5. *Chevron <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %> 6. Minnesota Mining <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %> 7. Texaco <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:TX)") else Response.Write("(NYSE:TX)") end if %> 8. Exxon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> 9. J.P. Morgan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %> 10. Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %> ***NOTE: FOOLISH FOUR STOCKS ARE PRECEDED BY AN ASTERISK AND ARE ITALICISED Last Update: 02/26/97
Today's Dow Numbers Stock Change Last -------------------- T - 1/2 40.75 GM - 7/8 58.75 CHV -1 67.00 MMM +3 93.00 Day Month Year Since 1996 FOOL-4 -0.36% 3.88% 3.38% 33.66% DJIA -0.78% 2.50% 8.30% 36.47% S&P 500 -0.78% 2.48% 8.77% 30.81% NASDAQ -0.53% -2.85% 3.84% 27.41% Rec'd # Security In At Now Change 1/2/96 155 3M 64.50 93.00 44.18% 1/2/96 198 Chevron 52.38 67.00 27.92% 1/2/97 231 Gen. Motor 55.75 58.75 5.38% 1/2/97 618 AT&T 41.75 40.75 -2.40% Rec'd # Security In At Value Change 1/2/96 155 3M 9998.09 14415.00 $4416.91 1/2/96 198 Chevron 10370.25 13266.00 $2895.75 1/2/97 231 Gen. Motor 12878.25 13571.25 $693.00 1/2/97 618 AT&T 25801.50 25183.50 -$618.00 CASH $396.17 TOTAL $66831.92

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