A number of technical indicators are pointing to a short term pullback in the stock market. The US dollar has begun to strengthen a bit after a seven month slide, the Russell 2000 index (small company stocks) have been underperforming, and sentiment has turned a little negative.
I sold EWZ today, making a small profit. Taking some risk off the table at the moment is prudent. EWA may be next; we will have to see what happens next week.
I still believe the dollar will continue is decline after a brief rally. As you know the dollar and the stock market have been intertwined.
If we do get a significant correction I will take the opportunity to add some equity positions at more reasonable prices.
For now our low volatility bond and income funds are doing fine. Conservative investors need not worry about the day to day fluctuations of the stock market.