PPP – Weakness abounds

Today we are cutting four asset classes back to 1/2 of their neutral allocation.  We sold 43 shares of IWM (Russell 2000 Index) @ $52.57; 111 shares of PIN (India) @ $20.18; 48 shares of VPL (Vanguard Pacific) @ $50.96; 182 shares of PBJ (Food) @ $13.90; and 49 shares of JKF (US Large Value) @ $52.12.  Brazil, Europe, and general Emerging Markets all are weak at the moment, as well, though we are maintaing their neutral weight (5% of portfolio in each case).  With 8 of our 16 assets classes showing meaningful current weakness, we see an overall global market that looks tired and may be either catching its breath or going into oxygen debt.  US TIPS (inflation-protected, government-backed bonds) are showing the greatest strength at the moment.


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