AAI

EFA More Attractive Than SPY

The "lower valuation" of Europe vs US may be due to its different sector weightings, such as higher Energy weighting.

Tuesday Outlook: Déjà vu All Over Again

I always like the Shadow Govt Stats stuff. Looking at the dark blue line, the obvious question is: When is 1980 coming again? That of course would be a major sell signal for commodities and TIPS. If economies buckle a more under the ongoing credit crunch, and if Emerging Markets really do care about taming inflation (a big If), the answer could be, "Soon!"

Money Magazine ETF Recommendations: Keeping It Simple May Be Stupid

Some of the other "asset classes" you mentioned are highly correlated with the five highlighted by Money magazine, which puts you FURTHER away from your efficiency frontier because of expenses and taxes as investors try frantically to re-balance such an over-diversified portfolio quarterly or semi-annually. I strongly recommend you take a look at David Swensen's "Unconventional Success: A Fundamental Approach to Personal Investment." Swensen is one of the world's most successful investors, whose arguments you don't address at all.

Domestic and International Stocks: Absolute and Relative Valuation Analysis

Steinhilber's long-term track record is worth looking at, because his long-term valuation discipline appears to have created substantial value. What's more, his investment letter on Monday 3/17/08 recommended that investors who are underweight equities add to their holdings, because the U.S. market is at valuation levels that have indicated the end of 70% of past bear markets. He's off to a good start with today's 4% equity rally.