Buy Signal

By on October 8, 2008

The Tactical Timing System generated a buy signal at the close today. To comply with the system the following positions will be purchased tomorrow at the market opening price.

Aggressive Portfolio:

Bunge Ltd. (BG) 4% Allocation

Dupont (DD) 4% Allocation

Conservative Portfolio:

No Changes


Target Allocations:

Aggressive Portfolio: 135% equities; -35% cash

Conservative Portfolio: 75% equities; 25% fixed income


Commentary: Major carnage has been dealt the market. Stocks appear to be way oversold as the market has dropped drastically in the past 1 1/2 weeks. October is typically a bottoming month and the November through April period is usually positive. However, serious difficulties face the economy as housing appears to be only halfway through its price correction. This extreme downward trend in house prices was last experienced in the 1930’s and some of us know the history of that decade.

Disclaimer: It is challenging to outperform a buy and hold strategy. Many investors have found themselves well-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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