Stock Market Advantage Sell Signal

By on October 27, 2011

The Tactical Timing System has generated a sell signal. To comply with the system the following positions were sold. The proceeds from the sales were reinvested in the Vanguard Short-Term Corporate Bond ETF (VCSH) and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT).

Position    (Symbol)

New Zealand Telecom (NZT)

Vanguard Total Stock Market ETF (VTI)

Vanguard FTSE All-World ex-US ETF (VEU)

Target Allocation:

45% equities; 55% fixed income

Below is an image of the trade confirmations (click to enlarge):

Stock Market Advantage - Sell Signal Confirmations





SMA Comment: The investing public has again become ebullient regarding the prospects for stocks.  The Europeans reaching an agreement on Greece has caused a mini-buying panic.  The rally can also be attributed to anticipation of the favorable season (November through April) for equities, rather than any improvement in the economic picture.

Although stocks are generally not expensive, demographic challenges in the U. S. will likely keep returns subdued in the years ahead.

Information on the Tactical Timing System (TTS): TTS is a proprietary timing system based on research conducted over 20 years.  TTS adjusts allocation between equities and bonds by 15 percentage points when timing signals are given.  Signals are based on a combination of fundamental valuation measures and real-time sentiment gauges.  To receive e-mail notification of timing signals send an e-mail to and type “Subscribe” in the subject block.

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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