I recently liquidated a batch of stocks that were invested in momentum plays, swing trades, and speculative stocks and moved to cash, T-bills, and money markets. After some stunning losses over the past 6 weeks, I needed some fresh air and a little time for a new perspective on the market.

I still think we're in for a volitile market with little upside potential over the short haul for the rest of the year. But being more bullish for the long term makes me look for more entry points back into the market for possible gains, than the prospects of being on the sidelines.

My experiance of over 30 year sin the market tells me that the core and majority of my portfolio should be invested so as to provide the greatest potential for gain with minimal risk. I think I have strayed a bit from that philosophy and payed dearly for it over the past year.

In light of that fact I have spent the past few weeks doing extensive research and homework to come up with a portfolio of diversified stocks that I think have the greatest potential to outperform the market over the next 12 months as well as appreciate in price over the long term 3 to 5 year out to 2009 - 2011.