many don't know but if you read action owners plus.com bulletins you do.tell me they are fully investing meaning every dime is invested. when someone tells me they think it is a good thing. cash, my friends makes everything else possible. back at my hedge fund i would never have less than 5% of my portfolio in cash. i would try to get up to 10% cash after a tumble in the market. cash is flexibility. when the market gives you an opening to start a position in a stock you want or buy more of something you own you need cash in order to do your buying. otherwise you have to sell something you already own on the fly or use margin meaning to borrow from your broker, something i never recommend because it's too risky. a big rally is a fabulous opportunity to get off market. start investing like a sane person rather than someone with a financial death wish. [ screaming ] >> what's this got to do with responding to a rally? we would all like to be heavily invested with a little cash before the rally but calling it in advance is difficult. raising cash which you mus

action owners plus.com has aig. it's been a major league tear. ♪ hallelujah insurance, apple. i say that i haven't said already tonight? bank of america, i'll tell you this. it's a bank. scott's miracle-gro are on my bad list. they came on, blew up, blew uh up, blew up. i may have to switch who i use on my tomato plants. that said, it is a company involved with gardening. gardening, bank, retail, insurance, tech. if someone had another stuff to put on the tomato plants i would take it. that's the problem. in the end maybe i'm the only guy still using it. okay, there. we do that, bingo. now to tyson. no relation to tyson foods. tyson! >> caller: boo-yah, jimmy. uh i love you on the morning show "squawk on the street." >> what's not to like? i have pointers, too. that's what i call an ensemble. >> caller: i would love to be on the show someday. i bought your book "getting back to even." the only thing i don't have is a signed copy of the book. my five stocks are google, boeing, starbucks -- i love my lattes -- jpmorgan, and home improvement -- home depot. >> that's the despot. n

is why not in the heat of battle but the calm in the end of the week i raid my stocks in action owners plus.comu can follow along. i rate them one to four. we sell out a bulletin on friday. the ones being the best that i want more of and the fours, time to get rid of them. the ones are the names you begin to buy more of right in the moments of chaos. you have already decided, they're ones. i like them. fours are expendables. threes are stocks you wish were higher before you sell them. they can be sacrificed if you need to raise cash for the ones. don't wait for them to get back to even if you could own something else that will go up more. a company is doing better, you should switch. why not sell it all when the market is turning against you? why not? american stores. don't know it? don't remember it? american stores is the old acme, my fav rut supermarket where my mom was friendly with the checkers. i owned american stores through the '90s betting they would be taken over. that it was worth more than it was selling for and time would be on my side. then one day we got a brutal sell-off and i c