Take the Profits and Run

The Great Bull market of 2000-2002 just might be history. Now, before you email me and request what's in my cigar case, there really has been a bull market.

Perhaps not in the new nifty fifty, not in the mega-caps and definitely not in technology stocks. However, many nontechnology small- and mid-cap stocks have been rallying nicely for the better part of the past two years. Financial, retail, industrial, consumer durable, restaurant, health care and raw material sectors have been generating excellent absolute returns for a while. This "stealth bull market" is evident in the performance of many small- and mid-cap indices.

Because of attractive valuations, I have owned and recommended many stocks in this part of the equity market. My portfolio -- and the portfolios of many value-oriented managers -- has been participating in this bull market. ...