Weekly Commentary

May 5, 2010

News stories over the last week have caused the markets to seesaw back and forth wildly, with several large up days and several large down days. While market commentators would like to make guesses about what this means for the future, we will simply continue to react to what is happening now, and the information we have gathered about the market in the past. When we are invested our first line of defense within the Stadion Investment Model is the sell criteria for each holding. If we are forced to sell a position, we will move to cash, and wait to see how the Investment Model reacts to the changing market conditions. So far, we have not seen any drastic changes to the Stadion Investment Model, and the model continues to signal for equity investment. One of our trend confirmation measures has turned off, which, per Model rules, has thus far stopped us from increasing investment at this time. Until the Stadion Model gives us stronger confirmation of a positive trend, we will remain at our current equity exposure, and keep a close watch on our current holdings.

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