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Climbing a 'Wall of Worry' and Catching a 'Wave of Wealth' with Stocks

Certainly, as the 5-year chart below illustrates, GD has been impacted by the worldwide economic recession and the recent cutback in defense spending by the government. Yet it has many ways to attract business including the manufacturing of corporate jets, ships and replacement equipment for the communications and information technology industries. GD Chart GD data by YCharts

If you're looking for a more diversified alternative to GD you might consider Lockheed Martin (LMT - Get Report) which trades at a low forward (1-year) price-to-earnings ratio of 9.5, pays more than a 5% dividend and has $1.2 billion in levered free cash flow (trailing 12 months).

As I wrote in an earlier article "As the late Benjamin Graham (the mentor of Warren Buffett) wrote in "The Intelligent Investor," his classic book, "It is far from certain that the typical investor should regularly hold off buying until low market levels appear... except when the general market level is much higher than can be justified by well-established standards of value."

There's plenty of worry right now that "...the general market level is much higher than can be justified..."but as the Federal Reserve and segments of the private sector begin spending more than $1 trillion in 2013 alone, the next wave of wealth should lift most investments higher and higher. Make sure you're positioned to benefit from these unprecedented financial opportunities.

At the time of publication the author held no positions in any of the stocks mentioned.

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

Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.

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SYM TRADE IT LAST %CHG
GD $137.92 -1.90%
LMT $187.22 -1.30%
PII $140.22 -0.79%
AAPL $126.18 -2.00%
FB $77.56 -1.60%

Markets

DOW 17,925.43 -144.97 -0.80%
S&P 500 2,091.15 -23.34 -1.10%
NASDAQ 4,939.0460 -77.8830 -1.55%

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