Well, now I do agree the market is getting frothy. When I hear the koolaid going around I naturally become sceptical. Of course I have been cashing out positions and banking my earned monies (Am up 28% from Jan 2008!!!) Essentially I outpaced the S&P, by not having lost any money in the 2008, 2009 pullback.

What am I pouring money into?

High Yield Bonds of varying qualities.

Small, mid and large cap with solid balance sheets. Any stock that is not completely solid is sold. That includes companies like FCX, GT, and so on. If a company happens to be loosing this year or parts of 2008 I will forgive, but before that the company better have high quality income.

What is a high quality small cap company? Northwest Pipe (NWPX). A small cap with a solid balance sheet, consistent earnings and I feel future growth. Granted they are being pulled from a the Janny Water Index, but that only gives you the opportunity to buy more stock. Though I have no idea what the Janny Water Index is.

As people have said, the trash goes down strongest, goes up quickest and then will go down as the stronger companies power through. Thus I suggest that you only consider  investing in very strong companies as now the going will get tough because they can’t hide behind accounting tricks.

Folks the dash for trash is done…