Though financial stocks rebounded Friday following a punishing several days, we think investors should remain exceedingly cautious and should not yet aggressively build positions unless they are geared for the long term.

Equity valuations are still appealing. We think investors are too cautious.

Investors need to think first, and not put money randomly into oil stocks.

The U.S. has been a graveyard for U.K. retailers, so investors are a little cautious. It could be that it wants to a get a flavor for the market through a small operation and then make a massive acquisition to get instant size.

What's important for investors to realize about the Dow is it's not just steel stocks and industrial-related stocks. There are growth stocks. There are financial, entertainment and industrial stocks. So when one sector isn't doing well, another sector may be doing well. And that's exactly what's propelling the Dow.

It's all more fodder for financial investors.