The World Allocation model portfolio has recently been updated. Changes to the model include as follows:
Raise from 0.0% to 13.0%
Sell FTSE/Xinhua China 25 Index FXI
Reduce from 10.0% to 5.0%
Sell S&P 500 Index IVV
Reduce from 15.0% to 10.0%Sell Dow Jones Copper Sub-Index [[JJC]]Reduce from 3.0% to 0.0%
The action in the stock market the last two days convinced me to make these changes. The reversal yesterday after the FOMC meeting was a negative divergence and would seem to indicate that the bears have regained the upper hand, at least temporarily. I eliminated JJC (copper) from the portfolio after a technical breakdown. I don’t know how deep the correction will run but I do think it will be just a correction. If the global economy performs as I expect, copper is likely to go higher in the longer term.
For the complete list of holdings, or for the breakdown of the model portfolio’s asset allocation, as well as its track record, please refer to the World Allocation model page.