Tuesday, October 03, 2006

Dow Time?

I don't believe the recent rally in the Dow is anything special. It mostly confirms the switch from small and midcap stocks to large cap stocks. Most of the homebuilders and energy related stocks are small or midcap. Over the past few months there has been a shift to more defensive names like P&G (PG), Colgate (CL), (JNJ), Bank of America (BAC), and AT&T (T). REITS should outperform if rates stay low or move lower, as their dividend becomes more attractive.

I still like a few tech names CRM, CKFR, AKAM, GOOG, AAPL.


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