Wednesday, January 23, 2008

Shift in Allocation

Things don't look as bad today as yesterday. At this point I've shifted 10% of the portfolio into stocks as well as a little into private equity, since the close of last month and increased beta by 0.14 points:

* Note: Private equity, hedge funds, and real estate are all mutual funds or listed stocks with the characteristics of those asset classes.

This has been achieved by reducing cash and increasing borrowing rather than selling other assets. I'll sell a little on a bounce in the market or if the bounce doesn't materialize. Only when the lows are successfully retested will I get really aggressive and start selling stuff to increase stock exposure.

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