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.