"The third year of the Presidential cycle has historically been the most profitable year of the cycle in terms of stock market performance," says market historian and money manager Jim Stack.

The editor of InvesTech Market Analyst explains, "This third year of the four-year cycle is often characterized by an accommodative Fed policy, and usually accompanied by a stable and growing economy.

"Characteristically, most of the third year gains come in the first half of the year where the first and second quarters are among the strongest in the entire cycle.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"For over 50 years, Medtronic (MDT) has been the premier medical device manufacturer in the marketplace," notes Jim Stack.

The money manager and editor of InvesTech Market Analyst explains, "With the invention of the battery-powered pacemaker in the mid 1950s, Medtronic began a long string of technological innovations.

"With short-term money markets paying close to 0% and residual stock market fears from the 2008 financial crisis, investors are being lured into bonds without recognizing the risks," says Jim Stack.

The money manager, noted for his "safety-first" investing principles, accurately forecast the financial crisis and housing bubble -- as well as many of the market's major turning points over the last two decades.

Now, the editor of InvesTech Market Analyst sees increasing risks in the bond market and offers six rules for bond investors to help avoid undue risk.

"ConocoPhillips (COP), our latest Featured Investment, is integrated energy company with world class production of more than 1.7 million barrels of oil equivalent (BOE) per day," says money manager and newsletter advisor Jim Stack.

The editor of InvesTech Market Analyst explains, "The firm's resource base is large and broadly diversified, providing a solid foundation for this "safety-first" investment.

"A top producer in North America, Conoco's global footprint and wide-ranging operations extend to the North Sea and many other key areas including Australia, Qatar and China.

"The period around mid-term elections is nearly always conducive to stock market gains, regardless of the political outcome," suggests market historian and money manager Jim Stack.

The editor of InvesTech Market Analyst explains, "We are now coming up on the strongest 3-quarter period of the 4-year Presidential Election Cycle.

"In fact, the fourth quarter of the mid-term election year has the highest average return of all quarters in the cycle (6.3%). Looking back over the last 20 election cycles since 1929, the average cumulative gain over the upcoming 3-quarter period starting in October is a healthy 18.1%.

"In looking for new opportunities, we will continue to focus on a combination of value, growth and financial strength ... all key attributes of PepsiCo (PEP), our latest featured investment," says money manager and newsletter advisor Jim Stack.

The editor of Investech Market Analyst explains, "At first mention of its name, PepsiCo might not be a company that peaks your interest. It's often viewed as just another stodgy stock that depends on its flagship soft drink line to carry the business along.

"Microsoft (MSFT) and its broad product line have become such staples of modern life that the company hardly warrants an introduction," says money manager and newsletter advisor Jim Stack.

The editor of Investech Market Analyst explains, "From its ubiquitous Windows operating system and Office productivity suite (Word, Excel, Outlook, etc.) to server products and entertainment devices, the vast majority of us use numerous Microsoft products every day.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Blockbuster Inc. (BBI) Q1 net loss was in line with estimates and same-store sales declined, shares also fell.
• CA Inc. (CA) shares sold off on high volume following the Q4 earnings miss and disappointing guidance.
• Cigna Corp. (CI) reported better-than-expected Q1 earnings and higher revenue, and reaffirmed its full-year outlook.
• Cisco Systems Inc. (CSCO) beat Q3 earnings and revenue expectations in the "strongest quarter in our history."
• Dean Foods Co. (DF) lower Q1earnings beat analysts' estimates, but shares fell on heavy volume afterward.
• Denny's Corp. (DENN) bested consensus estimates and year-ago EPS by a penny, but said same-store sales fell.

"Financial uncertainty creates nervous investors. And high levels of nervousness create overreaction or even outright panic," says Jim Stack. Incidentally, the market historian and timer who beginning in 2007 accurately warned against the unwinding of a derivatives-based housing bubble.

The money manager and editor of InvesTech Market Analyst also turned bullish just prior to the market lows in March 2009. And despite the recent market uncertainty, he continues to remain bullish.

He explains, "A lot of the most recent volatility was trader-induced panic. We think it was a response to perceived goblins rather than credible smoke, let alone fire. What I care about is whether or not the blocks are still in place for a sustainable bull market and safe profits.

"Our safety-first portfolio is built using bottom-up, fundamental analysis to choose individual investments; one new buy in our portfolios is Darden Resaurants (DRI)," says James Stack.

The money manager and editor of InvesTech Market Analyst explains, "Darden is a destination dining experience. Unlike the pop-in chain restaurants where the meal is on the way to some other event, Darden's nearly 1,800 locations are in themselves the "event."

"Devon Energy (DVN) is refocusing itself," says money manager and advisor Jim Stack. In his InvesTech Market Analyst he says, "We continue to view Devon as an untapped opportunity."

"Non-core holdings are being shed, and the proceeds are being used to accelerate growth of the company's premier North American assets."

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"PepsiCo (PEP), my top pick for 2010, remains underrated by the market," says Jim Stack.

The money manager and editor of InvesTech Market Analyst suggests, "All too often, it's viewed as a stodgy soft drink company, fully reliant on its namesake soda line. That's a misconception." Here, he sets the record straight.

"Is a stock market correction imminent?" asks market historian, timer and money manager Jim Stack.

In his Investech Market Analyst, he answers, "Yes. But, actually, one could answer that question the same way at almost any stage of every bull market in history. Corrections are always imminent in bull markets, with the only question being how severe the next correction will be."

Here, he looks at the market's history to help forecast both the likelihood of an upcoming correction as well as the historical evidence for a "Santa Claus rally."

"We're always ready to shift to an individual stock when we see an attractive investment opportunity like Equifax (NYSE: EFX)," says money manager and advisor Jim Stack, who incidentally, accurately called both the 2008 market top and the March bottom.

In his InvesTech Market Analyst, he explains, "The stock is attractively valued based on revenue, cash flow, and earnings power of the company." Here's his review of the credit reporting agency.

"Equifax is in the business of supplying clients with the power of information and is most commonly known as a credit reporting agency. The 'credit score' your banker looks at when you apply for a loan is derived from information supplied by Equifax and its competitors.

"There's a misconception out there about PepsiCo (NYSE: PEP); all too often, it's viewed as a stodgy soft drink company, fully reliant on its namesake soda line," says money manager and newsletter advisor Jim Stack.

In his InvesTech Market Analyst, he suggests, "In reality, PepsiCo owns some of the most sought after brands in the world, including Gatorade, Tropicana, Frito-Lay and Doritos." Here's his review of the company and its outlook.

"PepsiCo does business in more than 200 countries worldwide, including key emerging market economies like China and India and, perhaps most important of all, it's a growth company with analysts expecting long-term future earnings growth of 10-12% per year.