Take the Money and Run, Part 2

NEW YORK (TheStreet) -- On Thursday I sounded some alarm bells when I suggested investors take the positive news from Europe, improving economic data in the U.S. and strong ADP report with a grain of salt and that they should become more cautious, not more bullish.

I have to admit, it was a gutsy move with the Dow Jones Industrial Average up some 240 points.

However, I'd like to take Friday's unemployment data and Intel's (INTC) revenue warning reiterate my worries and my advice: For those who can, take the money and run.

Markets aren't selling off at the moment because investors believe a third round of quantitative easing is a certainty. Once again I must sound a warning -- QE3 will do very little to help stocks. Buying bonds simply does not create jobs.

Moreover, earnings estimates, as I wrote Thursday, will likely come down some 20 to 25% from current levels. Lastly, so far this century the months following an election have tended to be somewhat erratic.

I'm not a fan of market timing and don't proclaim to have a crystal ball. However, I do believe in data -- and the data, both fundamental and macro-economic, is telling me trouble lies ahead.

Avoid broad market exposure such as owning the SPDR S&P 500 (SPY) exchange-traded fund and look to rebalance your portfolio towards companies with strong balance sheets and a solid dividend yield.

Some of my favorites are McDonald's (MCD), Bell Canada (BCE), Southern Company (SO) -- especially after the recent sell-off, and Johnson & Johnson (JNJ).

I also think that commodities ETFs like SPDR Gold Shares (GLD) and iShares Silver Trust (SLV) will fare well. Be careful of oil though, a potential release of the strategic reserve by President Obama -- should he win -- could put a damper on prices.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Oliver Pursche is President of Gary Goldberg Financial Services, a boutique money management firm located in Suffern, NY. Additionally, Mr. Pursche is the Co-Portfolio Manager for the GMG Defensive Beta Fund, and a Founding Partner of Montebello Partners, llc. In his role as President of GGFS, and as a member of the GGFS Investment Committee, Mr. Pursche helps oversee the investment portfolio of over 2000 clients with over $500 million dollars in assets. Mr. Pursche frequently provides market and economic commentary on CNBC and Fox Business News, as well as often being interviewed by The Financial Times, US News and World Report, Thomson Reuters, Bloomberg Businessweek, and the Associated Press regarding his and the firms views on the latest market news and events. Mr. Pursche's views on the market and investment strategies have been featured in the Wall Street Journal, Investors Business Daily, Smart Money, USA Today and other national business publications. In addition to writing for TheStreet.com, he is also a weekly contributor on Forbes.com and BankRate.com. His daily market commentary can be read at www.betafundcommentary.com or you can listen to him on www.financialtalkshow.com weekdays at 10:00 AM.