The dow jones industrial has hit 10,000! However,the unemployment rate has hit 10% and the real economy is still suffering. I have converted most of my holdings to cash and will sit on the sidelines until I find value in this market. I still hold a few conserative names that will continue to generate cash regardless of the economic climate. These companies include Ralcorp,Wal-mart,Coca-cola,Procter and Gamble,Johnson and Johnson,and Becton Dickenson. I could very well miss an outstretched rally but I’m not willing to buy overpriced equities. I will continue to hold 20% in cash and about 40% in municipal bonds.

Advertisements