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  • Why This Rally Is Unsustainable [View article]
    The author is correct. Earnings are deteriorating and fundamentals remain weak. Banking sector is essential to a recovery and banks are crippled; facing more real estate writeoffs and consumer deleveraging. Stock market has "corrected" to the upside and will now give it back over the next three months.
    -Investors can find monthly cash flow in MLP's around 7-10%(KMP, EPD, TPP, LINE) and Ginnie Mae bond funds (4.5-5%).

    -Also consider intermediate investment grade corporate bond funds due to wide credit spreads that will come in over time(5%).

    -Stocks with strong balance sheets will be buys again after the market corrects.

    -A strong short is the TBT (20 year T bond).

    -Cash can be held in SHY (1-3 year T's; 2%)

    Note: Long all of the above.
    May 02 12:48 pm |Rating: +7 -1 |Link to Comment
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