Week of 12-7-2008

Timing Model = 0
50% long, 50% cash

Global allocation of long positions
MSCI EAFE Index 20%
MCCI Emerging Markets Index 10%
Russell 3000 Index - U.S. 70%

Top U.S. Sectors
U.S. Telecommunications 4.5
U.S. Pharmaceuticals 4.5
U.S. Health Care 4.5
U.S. Consumer Goods 4.0
U.S. Biotechnology 4.0
Small Cap Value 2.5
U.S. Utilities 2.0
U.S. Oil & Gas 2.0

Top Intl. ETFs
MSCI Japan Index Fund 1

Strategy 3
Money Market 50%
U.S. Long Bonds 50%

Strategy 4
U.S. Long Bonds 25%
Agriculture 25%
U.S. Small Cap 25%
U.S. Large Cap 25%

Not very much in changes since last week. Long Bonds have hit the outer bonds of optimistic sentiment, and contrary to what you may think, nose bleed optimism in long bonds has usually resulted in lower yields over the preceeding 3-6 months. Bonds look like a pretty good long trade from here, despite the big run up in prices.