Smart Money (magazine) re-cap

My portfolio has been trending down the past few days, and my returns have drifted from around the 16% range to about 13.5% for the year. Lately I've been thinking about ways to limit my portfolio's fluctuations/risk. I'll hopefully put up a post about it in the near future, but as for now some of my ideas are: put options on indexes, having some small & micro-cap stocks in my portfolio, beta, and finding any literature on correlations of specific ETF's with the S&P 500.

I picked up the August issue of Smart Money and browsed through the issue. I just wanted to recap some of the stocks highlighted.

• Although rising interest rates hurt banks in general, the issue highlights 3 banks worth looking into because they are big and diversified: Bank of America (BAC), JP Morgan (JPM), and US Bancorp (USB).
• Keynote Systems (KEYN) was highlighted as a value play. It's profitable, cash flow positive, a growing, they have about $7 in cash and $1.18 in buildings/land.
• Buffett worthy picks: BUD, Ishares Dow Jones Utilities (IDU), Sysco (SYY)
• Bill Miller stocks: Cisco (CSCO), Citigroup (C), and Yahoo (YHOO)
• Peter Lynch worth stocks: Conocophillips (COP), Independence Community Bank (ICBC), and Aetna (AET)
• Sir John Templeton: Harley Davidson (HDI), Home Depot (HD), Matthews Asia-Pacific (MPACX)
• Five stocks with nice levels of cash and cash flow: Applied Materials (AMAT), Illinois Tool Works (ITW), Kimberly-Clark (KMB), Michaels Stores (MIK), and Raytheon (RTN)