Wednesday, October 6, 2010

Equity Positions Added to Model Portfolios

The chart below clearly illustrates the volatility of the stock market this year. Most of the year we have enjoyed the low volatility uptrend in our bond/income fund positions.  I added a couple small equity positions to our model portfolios on Wednesday. While I have turned bullish on stocks near-term, we need to realize that these equity positions are going to be subject to larger day to day swings. It is the beginning of earnings season; Alcoa will be the first to report on Thursday.  As each major company reports either better than or worse than expected earning we will see the overall market react. I will have protective stops in place, but I need to give these investments enough room to breath.



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