cowboy dickrdoo

August's Rational Exuberance Update

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Last time I posted it came as a complete surprise that the second round was over. Since it started at the beginning of February the contest would end at the beginning of August but it seems as if people are still posting and posting at least once a month gets me off my weekend butt.

I outlined my strategies in my original post. This is just a monthly size and style allocation update. Even though I careless if no one follows my recommendations I know a lot people do.

Buys:

Foreign (EFA)
PEx(10yr-.0048)=0.97
Present PE: 17.24
Average PE: 19.73 (5.34% 10yr Bond)
Allocation:16% to 17%

SP500 Growth (IVW)
Avg. PEx(10yr-.0048)=1.35
Present PE: 16.41
Average PE: 27.54 (5.34% 10yr Bond)
Allocation: 26% to 38%

SP400 Growth (IJK)
Avg. PEx(10yr-.0048)=1.28
Present PE: 20.77
Average PE: 25.97 (5.34% 10yr Bond)
Allocation: 34% to 37%

SP600 Growth (IJT)
PEx(10yr-.0048)=1.18
Present PE: 23.56
Average PE: 23.95 (5.34% 10yr Bond)
Allocation: 8% to 16%

Emerging (EEM)
PEx(10yr-.0048)=0.76
Present PE: 17.78
Average PE: 15.48 (5.34% 10yr Bond)
Allocation: 0% to 6%

Sells:

SP500 Value ( IVE)
Avg. PEx(10yr-.0048)=0.84
Present PE: 26.59
Average PE: 17.07 (5.34% 10yr Bond)
Allocation: 0%

SP400 Value (IJJ)
PEx(10yr-.0048)=0.79
Present PE: 22.38
Average PE: 16.17 (5.34% 10yr Bond)
Allocation: 0.0%

SP600 Value(IJS)
PEx(10yr-.0048)=0.78
Present PE: 29.74
Average PE: 15.82 (5.34% 10yr Bond)
Allocation: 0.0%

Yours Truly,

Cowboy Dickrdoo

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