Market getting frothy, time to ring the register

I've started taking some chips off the table. Already cash heavy. But given the recent market run-up is not supported by fundamentals, I'm seeing as this as a good time to take some profits.

I wrote last that I believed the S&P pivot point was 1,250 based on my forecast for global earnings growth this year. I continue to hold that line and my conviction is strengthened by a recent downgrade in growth estimates by global powerhouse China.



Despite signs of emerging growth in the U.S. there are just too many uncertainties (Greek default, contagion spreading to Portugal, Italy, war with Iran, Syria, U.S. election, escalating gas prices) to warrant being fully invested right now.

I continue to believe the U.S. is the safest bet for equities. But my long-term forecast envisions other countries, including Australia, Canada, Brazil, China, even some African nations taking global economic market share. I'm working to put together a cost-effective portfolio that represents significant stakes in these countries.

Mattress is getting even lumpier thanks to the equity run-up.