Buy Signal

By on January 22, 2008

The Tactical Timing System has generated a buy signal. To comply with the system the following positions will be purchased:

Aggressive Portfolio:

Anheuser Busch (BUD)

3M (MMM)

Brinker International (EAT)

Regis Corp. (RGS)

Starbucks (SBUX)

Conservative Portfolio:

Huaneng Power (HNP)

Wells Fargo (WFC)

Brunswick (BC)

Aegon (AEG)

General Electric (GE)

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Target Allocations:

Aggressive Portfolio: 90% equities; 10% cash

Conservative Portfolio: 45% equities; 55% fixed income
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Commentary: Worldwide panic is creating an apparent buying opportunity in equities. However, I believe the ultimate low will probably be months, if not years, in the making due to the excesses that were allowed to build up in the economy. The Fed has done a very poor job of managing interest rates this decade which created an atmosphere where risk was almost completely disregarded. Bernanke is now holding the very heavy bag that Greenspan left him.

Disclaimer: It is very difficult to outperform a buy and hold strategy. Many investors have found themselves best served over long time horizons by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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