Sell Signal

By on January 18, 2011

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

30% of the position in Rayonier Inc. (RYN)

100% of the position in Vanguard Total Stock Market ETF (VTI)

100% of the position in Vanguard FTSE All World ex–US ETF (VEU)
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Target Allocation:

30% equities; 70% fixed income
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Commentary: The market is very extended to the upside with the Fed’s manipulations acting as a continuing support. It is impossible to predict when the market’s direction will change. However, it doesn’t appear to be an attractive entry point for new equity investment. Investors are overly bullish and corporate profit margins are approaching unsustainable levels.

Note: Funds generated from the sale of the above securities will be invested in the Vanguard Short-Term Corporate Bond ETF (VCSH).

Disclaimer: It is very difficult 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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