Ignore the Urge to Bail

That's completely and utterly wrong.

Plus I am as defensive as I can be, over and over recommending 4% yielders on my show -- admittedly nice protection given the 10-year. I say I like everything in the supermarket including the supermarkets but not much else. I hate tech, I don't like most financials, and I believe that consumer discretionary spending is on the decrease. I like Heinz(HNZ) and AT&T(T). I would like them if a nuclear warhead detonated in Valencia, Calif., killing 12,000 people in an instant, a la the TV show 24.

But I am not going to panic or panic people. I suggest gradual pullouts and build ups of cash. I suggest overseas buying. I suggest owning a gold stock. These are all new defensive postures for me.

But I am not going to panic or panic people.

The Fed could wake up from its slumber/stupor. Subprime could be contained by several quick rate cuts that make the repricing easier. The subprime culprits could all be blown out and a Buffett come in.

The cash on the balance sheets at most major firms is huge and the buybacks continue.

So I am cautious. I am worried. But I am not scared and I am not panicking and I am not going to recreate 1998. I have a responsibility not to and I have the history not to.

Get defensive if you aren't. Play D.

But blow it all up because of something that the Fed can fix? Been there. Done that.

Not doing it again.

>To order reprints of this article, click here: Reprints