The second quarter is now behind us and for the most part it was a positive one in terms of the market pushing higher almost 40%. This is the second review of my 2009 stock picks through June 30 (see: Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more). There was a lot of talk about green shoots this past quarter as Wall Street was looking for any small bit of optimistic data to support the market.

The federal printing presses continued to run at full speed pushing the dollar lower and oil prices higher. While the feds were printing money to cover their deficits, the States do not have that same luxury and many of them are having trouble balancing their budgets to the tune of billions of dollars.

Not that this is his doing, but it is his chosen calling, and right now he is calling out to the Congress to move forward on various contentious budget proposals and continued federal stimulus packages.

In December when I posted Chasing Value: Annaly Capital Mgmt -- from watch list to buy I was not just recommending Annaly Capital Management (NYSE: NLY), I actually was buying it.This residential REIT buys secured home mortgages, leveraging short term against long term rates.

The 2009 clock is ticking loudly. The year has started off with a lot of continued turbulence. We have a new president, Barack Obama, who will boldly lead us where no man has gone before -- two trillion further in debt, most likely.

Not that this is his doing, but it is his chosen calling, and right now he is calling out to the Senate minority to compromise, and get yet another federal stimulus package off the shelf and out the door.

Anybody have capital gains to show this year? I didn't think so. Not unless you were shorting the market, and in particular financials. I got clobbered with everyone else. There were not many places to hide. Picking winners was like guessing where each piece of debris would land after the tornado moved through town.

The average crystal ball is looking quite foggy about now, nevertheless I have rummaged throughout the stock market to select nine stocks that I think offer more reward than risk. The market is priced for the worst in so many cases that I think the list could have included 50 companies without too much trouble.

In 2007 and 2008 I owned some but not all of the picks for the year. This year I own all of the stocks and they were all acquired in the latter part of the fourth quarter for a new portfolio.

For 2009 I will be tracking a real portfolio created this quarter in scary times, when everyone is second guessing themselves, the market, and the economy. Last week I wrote Chasing Value: Annaly Capital Mgmt -- from watch list to buy noting that Annaly Capital Management (NYSE: NLY) was acquired, for among other things its 15% yield and basic stability. It trounced the market in 2008, but the yield by itself was very rewarding and I expect that to continue.

Yesterday General Electric (NYSE: GE) dropped over 8% from $17.39 to $15.96. This triggered a buy order I had in at $16.00, after a negative outlook by rating agency Standard & Poors suggested that there was the potential that GE could lose its prized AAA rating sometime in the next two years based on stress it was feeling on its balance sheet related to its financial services division, and GE's uncertainty in other businesses.

• Annaly Capital Management (NYSE: NLY) is one of the stocks mentioned in Fortune Magazines "Ten Promising Stocks for 2009" and is currently paying almost a 15% yield at Friday's closing price of $14.92. The company borrows money at short term rates and only invests in long-term Federally backed mortgages. They have avoided subprime loans and derivatives entirely.