Small-cap growth guru Jim Oberweis of the Oberweis Report and Oberweis mutual funds thinks the second-half pick-up is no macroeconomic head fake, but he is letting go of stocks with sub-par growth prospects.
Often this allocation consists of a simple mix between stocks and bonds, and is then further refined using sub-asset classes such as developed international stocks, emerging markets, Treasury bonds, corporate bonds and so forth.
The ghouls, goblins and vampires in the form of unregulated CDS contracts, overleveraging, Bernie Madoff, Internet stocks and sub-prime mortgages are sure to rear their ghoulish heads again.