In May foreign stocks, as measured by the MSCI EAFE Total Return index, crossed below their 10-month moving average, so that asset class will be sold out today. Ditto for commodities, as measured by the S&P GSCI Total Return index. The S&P 500 Total Return index remained above its 10-month moving average by a tiny 0.25%, so the model remains invested in U.S. stocks. During the month of May the index was below the moving average for a time. No one will object if you jump the gun and bail out of U.S. stocks as well.
Here are June's allocations:
- U.S. stocks: 20%
- US Treasuries (10 year): 20%
- REITs: 20%
- Cash: 40%
