NEW YORK (
TheStreet) -- On
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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV