Harvesting Profits and Reseeding Cash

by Jay Pestrichelli on October 1st, 2012

See our article on MarketWatch.com this morning about  Harvesting profits and reseeding cash.

Summary: If this is going to be a Fed driven market and not a consumer recovery, here's what to expect.

1-Financials have less risk with the Fed buying up mortgage backed assets, so it's time to get in for their recovery that has plenty of room to run.

2-Inflation should be on the rise while so look at the TIPS and Material sector to follow.

3-Emerging markets have paid most of their dues and have earned a spot in portfolios. While this may be a bumpy road, central banks are following Bernanke's prescription so watch for a similar performance to the US of 2012.

4-Europe is our favorite region for recovery and if you're looking for some high risk/high reward trades with Italy and Spain. Avoiding China until the consumer (and their employment) can take the reigns from the Fed and then watch for Asia to outperform.


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