The Dogs of the Dow Are Outperforming Their Index: AT&T Inc. (T), Merck & Co., Inc. (MRK), General Electric Company (GE)

Page 2 of 2

Upcoming
The Federal Reserve Open Market Committee meets early this week and will have a statement announcing its intentions moving forward on Wednesday at 2 p.m. ET. The Federal Reserve is currently buying $85 billion worth of long-term assets every month, and Fed Chairman Ben Bernanke has said that will continue until employment drops to 6.5% (it’s currently at 7.7%) or inflation picks up  (it’s currently at 0.7%).

While the Dow is hitting all-time highs, Bernanke said in testimony before the Senate last week, “I don’t see much evidence of an equity bubble.” With margin debt nearing all-time highs, I disagree with him and lay out my reasoning here.

The article The Dogs of the Dow Are Outperforming Their Index originally appeared on Fool.com.

Dan Dzombak can be found on Twitter, @DanDzombak, or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Intel, Johnson & Johnson, and McDonald’s and owns shares of General Electric, Intel, Johnson & Johnson, and McDonald’s.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2