Mark Lamkin has an unusual indicator for when he plans to get out of his more than 70 percent portfolio allocation in cash—the U.S. Congress.
Specifically, the "supercommittee" created during the fight over the debt ceiling"would be the catalyst," the chief executive of Lamkin Wealth Management told CNBC Tuesday.
"We’re going to to be in a trading range for the near term, based on this supercommittee," he said. "If they come up with $1.5 trillion or more [in cuts to lower the deficit by a Thanksgiving deadline], I think we’re gonna run. But I don’t think they’re going to do that."
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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