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Gurus' Asset Allocation in the Recent Market Whipsaw

|Includes: AGG, BWX, CRED, DBC, EEM, EFA, GSG, IWM, IWN, IYR, LQD, MDY, MUB, PCY, SHY, SPDR S&P 500 Trust ETF (SPY), TIP, TLT

Entering October, one saw the markets trembled a little bit. It’s time to review several well known asset allocators’ positions.

Top performing asset allocation fund Leuthold Core Investment LCORX (19.4% YTD return up to 10/2/2009) made a noticeable reduction in its equity exposure: from almost 100%  to 71%. That is quite significant, even if one takes the recent market drop into consideration. See the following chart:

LCORX_10022009

The other top performing fund Janus Balanced (MUTF:JABAX) (17.1% YTD return up to 10/2/2009) has been steady after some equity reduction at the end of September: its equity exposure has been around 50%. See the following chart:

JABAX_10022009

Waddell & Reed Asset Strategy Y (MUTF:WYASX) (17% YTD return up to 10/2/2009) has increased its international equity exposure significantly since early September:

WYASX_10022009

The takeaway from the above is that we are in a period of uncertainty. In such a period, it is crucial to be consistent with strategies you are using and position your portfolios accordingly.

Disclosure: No Positions.