The Market Booms, but Do You Own Any Duds?

The "old economy" stocks such as Caterpillar were once thought to be dead, and everybody jumped into pharmaceuticals, health care and banking. Now that trend is switching, even though Dorsey noted that Morningstar still has high ratings on these stocks. In particular, he said, there is enormous opportunity in a stock like Johnson & Johnson that for some reason investors have ignored.

But the recent run in stocks isn't without risks. Fuel prices continue to climb and problems persist in the U.S. housing market following the fallout of the subprime lending market. As the Dow crossed over 14,000, the price of a barrel of oil hovered between $74 and $75 and the dollar continues to fall compared with the euro and the British pound.

Just one week ago, the Dow fell nearly 150 in one day upon bad news from Home Depot, Sears and homebuilder D.R. Horton. Yet the index quickly shot back two days later, climbing 283 points in one day after a series of retail sales reports.

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