The Fed's Xmas Gift: A Market Rally

Per our previous post we had noted that our portfolios have been moving to higher risk assets.

Just for a quick update: In the last 2 months our recent additions to the Max Growth allocation are 4% in high yield bonds (HYG), 2% in small cap growth (IWO), 6% in small cap value (IWN) and only 5% in cash.

We are still holding our bias toward growth over value in large cap stocks. We believe the market could move back toward the top of its range through Christmas and into January. If this scenario plays out, we could see growing a bit more conservative again. We could see a range-bound market for some time.

Comments

[anon:]

wow, that's more useless than bespoke's comments

2007 Dec 03 05:04 PM

[anon:]

wow, that's more useless than bespoke's comments

2007 Dec 03 05:08 PM