Today we saw crude futures trade back above $72/barrel, German authorities declared a heightened state of "terror alert," the 10-year U.S. Treasury rate spiked ten basis points, another leveraged mortgage-related hedge fund, Capital Asset Management, has frozen redemption requests, General Motors (GM) said it sold the fewest number of vehicles in a single month, June, since 1993; and another major private-equity group, Kohlberg, Kravis, Roberts & Co. announced that they're cashing in--presumably at or near the top of that bubble. What to do? Buy some of the riskiest, highflyers that also have the potential of dropping like lead weights when consumers come to realize that eating is a tad more important than texting friends over the latest Brittany Spears or Paris Hilton gossip. Research In Motion (RIMM) and Apple (AAPL) sailed higher to new all-time highs. The disconnect between some stock and asset valuations amidst a backdrop of downright frightening fundamentals is simply jaw-dropping.
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