Stocks are rallying again this morning on the potential of a rate cut tomorrow. I'm not even sure if the market needs the cut. The question is what is going to happen when the Fed makes it clear that they're going to stop cutting rates? Is it like the rug is going to be pulled out? It shouldn't be. The market is strong enough on its own, and should be allowed to re-price itself based on the risks that exist.
I continue to like stocks with international exposure, but I wouldn't totally disregard US stocks. There will be some buying opportunities in US financial stocks, and I'm thinking that the time to buy those will probably be Q1 or Q2 2008. You can buy them now because a lot of downside has been taken out, but I think there will be a little more shakeup when they report year end 2007 numbers.
If you're inclined to buy a financial stock, I'd take a look at Credit Suisse (CS). If you're looking US, try none other than US Bankcorp (USB).