Speechless, as the Tail Wags the Dogs of the Dow

For a long time, we've maintained that it's a good time to put most of one's assets in cash like vehicles, and to set aside some (10, 20, 30%) for certain growth ops, which for us amounts to big liquid stocks trading at a discount to their NAV, with some event or "catalyst" on the horizon that could cause the stock price to gain significantly. We've maintained that call and put options are the way to participate with this smaller allocation of assets. It's worked well, but never as well as this last stretch of time from the new year. And so we are speechless as we watch cash flows wash around the market causing giant waves of buying in stocks like TSO, MA, DJ, to name just a few.

And the point here is remind ourselves and our 3 readers to be a rabbit, not a deer in headlights. Nevermind the Pigs vs. the Hogs. Be a rabbit like the rabbit in Pink Floyd's "Breath", and you'll have a theme song to remind you, as you take profit and roll back into cash-like positions that yield something, and you can sing along:

Run, rabbit run
Dig that hole, forget the sun
And when at last the work is done
Don't sit down It's time to dig another one

For long you live and high you fly
But only if you ride the tide
And balanced on the biggest wave
You race towards an early grave

The point is, it all adds up. Sure, it's great to plough into something hot and sexy like GOOG Jan 08's at the money, and watch them trade every 11 minutes on your Blackberry; but at what price is the stress? By the way, Skechers are listed as LEAPS today.

• 07-366 Skechers U.S.A., Inc. ("SKX/KHJ/XJP")

Nevertheless, back to the fields (hopefully with some of those trading gains) wherein we find a company that reminds us of ACAS, funding middle market companies, and offering a yield that looks almost TGTBT. The stock is MCG Corporation, symbol MCGC, which recently had a few run-ups, but now trades below its 200 day moving average, and a P/E of around 9. Moreover, it's yielding around 10%.

I know, I know-- "four letters"; but its leadership looks to have pedigree (no CEO felonies or major flame outs). Something to think about is all.