I think the market is very treacherous right now... Libya and the rest of the turmoil makes it even more so. I have sold a bunch of stuff and have $ to put back to work when the coast is a bit more clear.
If the troubles continue, energy, energy services, and alt energy could be one place to go.
If the troubles recede, the economic recovery continues, commodities, industrials and, increasingly, consumer discretionary probably still have room to run.
I agree Musket. I'm hoping for a nice correction in the next few months. Who knows when but it appears the markets are running out of a bit of steam. I still like the whole energy and commodity story. Seems like emerging markets have lagged this year as fund managers etc have moved money back into US stocks. I think the emerging economies are still the place to go long term. If we get a nice correction I will search there.
Still some great US companies to watch....ones with great revs and roic like SAM, EBIX, DECK, ISRG, and APPL. I recommended all those awhile back if you recall and they have all done well.
For now I hold about 40% in cash and wait for a correction. I never like to overpay for anything. Yes, valuations may stay higher than normal since nobody wants to get into bonds and a bit of a premium will exist in stocks prices from now till they raise rates.......if they ever do hahaaa...
Yes, reflation increases risky asset values as it forces yield-starved money out of safer securities offering paltry returns. But the endgame results in inflation and FED tighening which exposes asset bubbles and their invevitable collapse. "As long as the music is still playing, you've got to keep dancing".