Mock...it's time I bought some bonds. But I do have more than 12.60 and it is going to be
a buying opportunity, I believe.

I was 30% cash going into today. I'm not convinced that this is 'the' correction. My
word is "reaction" complicated by algorithmic program triggers culminating in the
proverbial self-fulfilling prophecy. I have no idea if I'm right or not, thus my neck is
out for the chopping.

^ What do you guys think of Cramer's "Circling the Wagon" strategy of selling your losers
and "circling" into other stocks that would be posed to move higher after? I did that
last May-June since I was caught holding mostly stocks (e.g. GS).

Still, nothing beats cash at this time.

Since I have $12.60 in cash on the sidelines it looks like I'm gonna have to take my lumps
and ride this out. :o(

I am overweight Asia ex Japan as well. i think today is an indication of the risks present
in the premature emerging markets. I am bailing out of some of these positions and holding
money in cash until their is certainty that China will not put capital restrictions on
their market. China is the heavy weight of this region. Even though, ETF's and mutual
funds are not heavily weighted in China; any turn in their market will be a signal of
corrections in South East Asian Markets. Your idea of holding 10% in cash or other liquid
investments is a good idea. I wish I had done the same

Last edited on: 02-27-2007 03:47 pm

^ YES.

Remember when everyone got all giddy a few weeks ago over Bernanke's Senate and House
testimony, coupled with "favorable" earnings reports, leading to near 100 points on the
DOW, and DOW closing at record levels?

Everyday, I just had to take something off the table, both winners and losers - while
everyone felt like they didn't have enough stock, I felt like I had too much equities.

I got into 50% cash and stayed about 40% cash before today's (February 27,2007) open.

This is the greatest buying opportunity since Oct. 8, 1998. These next 2 weeks are gonna
be sale.

Should we review asset allocation on a day like this??

ooo... so many choices...

Um, longest time possible would be awesome (would you agree?). And a correlation matrix
would work out just fine.

Maybe tonight I could look into how long these indices have been around, and then I could
refine that a little more (by giving you the ones that have been around the longest). But
for now, this would be great.

Thanks again.

The tool I have will only handle 25 securities at the moment (I hope to expand that in the
near future), and that will give me 300 cross-correlations.

If I put all of the indices in a single portfolio, the correlations will be computed over
the life of the index with the shortest history; i.e., the longest time for which all of
the indices existed. I can compute correlations for shorter periods if you'd like, or I
can put the longer-lived indices together to get correlations over a longer period.

Finally, how might you want to see the data? Is a simple correlation matrix adequate? I
could post a matrix on my website and send you the link; I think that would be easiest.

So, what do you like?

Here are the countries:
- EWO EWA EWH EWK EWD EWL EWU EWS EZU EWQ EWJ EWM EWG EWI EWN EWP EWY IEV FXI EZU EEM EPP
EWT EWZ EWW EWC ITF EZA ILF EFA EFV EFG IOO

Then, if you have time, here are correlations by style category:
- JKL JKI JKF IWS IWW IWN IWD IJS IJJ IVE JKK JKH JKE IWP IWZ IWO IWF IJT IJK IVW IYY NYC
IWV ISI

Then, if you have even more time, if you could add the following into the category just
above (the second think I was asking about):
- AGG GVI GBF CSJ CIV CFT LQD SHV SHY IEI IEF TLH TLT TIP GSG IAU SLV ICF IYR

Thanks a lot. This is really awesome.

Last edited on: 02-24-2007 01:44 pm