Hedge fund manager John Paulson who made $3.7 billion last year by shorting US banks has now invested $2.2 billion in 168 million shares of Bank of America.

Some reporters found this out looking at SEC filings and trumpeted the news yesterday as a sign that the coast is clear with banks.It might make you wonder What is the Dow Jones Stock Exchange.

Paulson's fund is now the fourth biggest shareholder in Bank of America.

He also bought 2 million shares of Goldman Sachs.

But he hasn't just been buying bank stocks indiscriminately. Notice that BOA and Goldman are the two most politically connected banks. Goldman practically owns the Treasury Secretary and President Obama - being one of the biggest campaign contributors to Obama last year and the birth place of Geithner in the business world.

Some banks are still failing. Every week there is a regional bank in the US going under so everything isn't perfectly fine yet.

But the economy seems to be on the mend a little and the stock market is certainly going higher. This is a good time to invest in the 100 highest dividend yielding stocks or to figure out how to take advantage of the rally.

If you are new you may want to check out my stock market beginners guide for making money in the stock market. It's free and will set you on the right track.