Everything’s going up. It’s like there’s no risk in the stock market. The risk is not being invested in enough in stocks, because everything’s been going up.
The stocks that are doing best in this new year are Blue Chips. Old faithful, Dow stocks, that’s where the money’s going because last year the growth stocks took off. Now you can find deals like Exxon (XOM) — which just pumped out 45% profit growth last quarter — for 12 times earnings.
Last month the market almost went into a correction, then just as we got to the tipping point the market rallied and now all systems are go again. Except for China, which is cooling off. Right now the dream portfolio has big bets on hot large cap growth stocks like Apple (AAPL), Baidu.com (BIDU) and Priceline (PCLN) , rolls the dice with mad money in high-flyers Lululemon (LULU) and Netflix (NFLX), while playing the odds in blue chips like Exxon and Caterpillar (CAT) that are 2011’s steady risers.
