The economy and markets have had an incredible run over the last 12 months. Those who stayed in are now even or up. The markets look like a balloon under water technically, higher highs and higher lows. There are still large amounts of money on the sidelines. We should remember earning 1-3% in CD's or Treasuries, while needing 5-6% income, will invade principal quite rapidly; not to mention inflation. The numbers guarantee it.

The markets with dividends and possible growth offer some hope, which has held our economy together in tough times. The markets climb a wall of worry while smoke and mirrors allow large and institutional investors to capitalize on public fear. As always, we must use caution and wisdom gathered from the past to utilize a strategy of placing profits in safer havens while keeping positions with income and growth flexible. Values abound, but traps offering little liquidity must be avoided.