Now that the markets have been saved and everyone is safe yet again on the long side, SPX futures are trading +9.5 in the premarket, NDX +9 and DJIA +75. Taking some off near here or trailing a stop probably makes some sense as rate cuts don't grow to the sky.
In the FWIW category, I was reading the SP Outlook September 19 Newsletter and see that they have reduced their exposure (just in time) to international equities by 5% and increased their allocation to cash to 15%. So their allocation is now as follows:
US Stocks- 40% - SPY 34%, MDY 4% and IJR (small cap 600) 2%;
Foreign Stocks- 20% - EFA 15% and EEM 5%;
Bonds- 25% -20% AGG and 5% SHY;
CASH 15%;
The newsletter also updates the SP Platinum portfolio which has an excellent long term performance record- Over the last 12 years give or take, according to S&P, the portfolio returned over 15% compared to about 8% for the SPX. Included in the portfolio of about 57 stocks are:
ANF AMGN BBY CVS COF CHK XEC DHR EMC GENZ HIG IBM MTW MSFT MOV NBR NVS SLB SYK and WAG;
It is too bad that our
friend Jimmy doesn't give us some kind of model portfolio to track so we can actually follow his
advice and see the results. I suspect their is a good reason for it.
