Fed Fails to Boost the Dow

Updated

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and research analyst Catherine Baab-Muguira discuss topics around the investing world.

The Federal Reserve's announcements today provided few surprises for investors, but many market-watchers believed the continuation of Operation Twist, which the Fed confirmed through 2012, would boost the Dow Jones Industrial Average. Instead, the Dow closed down 0.1%. However, Federal Reserve Chairman Ben Bernanke confirmed that all of the tools were on the table: "If we don't see continued improvement in the labor market, we'll be prepared to take additional steps if appropriate." In the following video, Isaac sheds some light on an uncertain market and identifies what he believes could be the strongest industry among the Dow components.

The reason Isaac remains bullish on a typically cyclical industry: Emerging-market demand for the underlying products continues to soar. To combat slow growth, investors should look for American companies experiencing tremendous sales increases in emerging markets. Our top analysts have identified a few in our special free report, "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to click here to get your copy today!

The article Fed Fails to Boost the Dow originally appeared on Fool.com.

Isaac Pinoowns shares of General Electric. Catherine Baab-Muguira and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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