If they don't make that $1.5 trillion in cuts "get your Dow 10,000 hats because here it comes."
He's waiting until at least Friday, when Federal Reserve Chairman Ben Bernanke speaks during the annual Jackson Hole, Wyo., conference, to change some of the cash position, but will leave the majority "until I get some answers from the supercommittee."
However, while he's sitting on that cash he is still looking for high-yielding stocks for the rest of the portfolio.
He likes the SPDR Barclays Capital High Yield Bond exchange traded fund, yielding over 8 percent, and the PowerShares S&P Bank Loan portfolio , selling for 90 cents on the dollar. He also would invest in the iShares Trust Dow Jones Select Dividend fund .
"Let’s face it, megacap dividend stocks right now may be yielding 3 percent to 3.8 percent," while the 10-year Treasury bond is at 2 percent, he said. "Even if earnings get adjusted down, you’re still yielding more than that 10-year Treasury, and that’s always pretty good value right now."
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