Stocks to Own as Fed Spurs Economy: John Dorfman

The Federal Reserve’s action last week to enlarge the U.S. money supply will bolster some stocks and hurt others.

Pundits are arguing whether the $600 billion of government bond purchases planned by the Fed for the next eight months are enough to get the economy humming again. That misses the point. Twice in the past two years, the central bank has initiated large open-market purchases of government bonds. What it does twice it can do three or four times, if it thinks it needs to inject more money into the economy.