The “Defcon Three” strategy of this week on “Mad Money” has aimed to get investors in the defense readiness position necessary for this high degree of uncertainty. Of course, Wednesday’s news is positive, but because of the high degree of uncertainty with regard to Europe that has persisted (and continues to persist on a solvency basis), we have advocated the unfavorable risk/reward trade-off for companies that need credit, companies that do a lot of business in Europe or names with a steep valuation. And while Wednesday’s coordinated central bank efforts provide important patchwork, it is key to continue to manage your risk.
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