The traditional portfolio allocation is 60% stocks and 40% bonds; and some analysts say never change this allocation no matter what. But bond prices are decreasing and equity prices increasing.

Some investors change allocations depending on market conditions–and we are changing allocations significantly away from the 60/40 ratio.

The current market appears to be on the cusp of another 4-6% drop over the next few weeks.

Our analysis indicates that all style boxes, sectors, and world indices have positive momentum. Only the US dollar is negative at this time.

The investments discussed are held in client accounts as of July 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.