Weekly Commentary
June 8, 2010
Little has changed in the markets or in the Stadion Investment Model in the last week, however we do have a quick update on our positioning and outlook. Continued price weakness has now officially made the current drawdown a market correction, defined by a greater than 10% drawdown. The Dow Jones Industrial Average has now lost 12% since the April high, the S&P 500 has decreased by 13.5%, and the Nasdaq Composite Index has lost almost 14%. The beginning of this correction pushed the Stadion portfolios into our fully defensive position, and the continued weakness in the markets and confirming negative market breadth data has kept us in those defensive positions ever since. Looking forward, if the equity markets begin to show signs of improvement in market price action, that movement will quickly be reflected in the indications of the Stadion Investment Model and we will adjust our allocations accordingly. Until then we will watch comfortably from the sidelines. - SMM-062010-028Looking for more insights?
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