Weekly Commentary
February 11, 2010
Over the past week the Stadion Investment Model has continued to signal a high risk environment and continues to witness deteriorating market internals and price action. This combination has resulted in low expectation for sustained market appreciation for which we are content to sit in a more defensive position.
Since peaking on January 19, most of the major indices are down between 7.5% and 10%. Much will be made about sharp rallies of greater than 1% in the media in this type of environment. These news driven and short-covering rallies are a further indication of increased volatility. This action will continue to be monitored for favorable market conditions before we increase equity exposure again. Currently the Stadion Investment Model is signaling for a fairly significant amount of risk in the markets during this downward trend, and these are the times where we wish to remain in a safer posture, in order to protect client assets.
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