Weekly Risk Report 2/19/2010
Over the last few weeks some weakness has occurred in several business sectors along with some geographical locations. However, the only drop in price that warranted repurchasing shares occurred in the Pacific Rim (less Japan) and in Latin America. In those two locals we did add about 5% to our holdings using cash accumulated from previous sales.
Risk remains moderate overall with the largest question mark being placed near the 13 Week Treasury rate. While it could rise tenfold and not be very high (current yield is 0.112%), the overall influence on our Relative Valuation component would become bearish should the short term Treasury rate return to more normal levels.
