3-8-2009

Timing Model = -1.0
30% long, 70% cash

Global allocation of long positions
MSCI EAFE Index 20%
MCCI Emerging Markets Index 30%
Russell 3000 Index - U.S. 50%

Top U.S. Sectors
U.S. Biotechnology 4.5
U.S. Health Care 4.5
Precious Metals 3.5
Composite Internet 3.5
U.S. Semiconductor 3.0
U.S. Oil & Gas 3.0
U.S. Consumer Goods 3.0
U.S. Technology 2.5
U.S. Pharmaceuticals 2.5

Top Intl. ETFs
MSCI Malaysia Index Fund 2
Latin America 40 Index Fund 1
MSCI Brazil Index Fund 1

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

Strategy 4
U.S. Long Bonds 25%
Agriculture 25%
Precious Metals 25%
U.S. Large Caps 25%

My timing model continues to indicate bottoming and sentiment becomes significantly more pessimisic. I'm now at 30% long and there's every indication this allocation will increase in coming weeks.

Below are a couple charts showing how emerging market equities are performing against the U.S. and EAFE. 30% of my equity positions are now in Emerging.