So if you are one of the lucky ones with cash to invest where do you put it?

First- Pay off all consumer debt- ALL of it.

Second – increase your 401k contribution to the max if you have not already done so. Even if you put it all in a very low yielding fixed income fund, the tax break and match from your employer gives you a great return.

Third- pay off your mortgage or as much as you can. Pretty much gives you a guaranteed return of 6% or whatever your mortgage rate is. (not spending 6% is the same as making 6% on your net wealth.)

Fourth- build at least six months worth of income in a US Treasury Money Market fund. Do not be concerned with the crappy yield.

Fifth- Buy shares is a carefully selected fund ( my preferred no load fund is Fairholme). The market sucks and you will be buying cheap shares.

And Finally – if Obama wins buy lots of ammunition. He said he would consider a levy of a 500% tax on ammo. Few investment returns can match that.