Tactical ETF Portfolio Shift Commentary 04/06/2009

In mid-March, we reduced exposure to domestic equities in favor of a move back into emerging market equities. This week we continued to build on that theme by further reducing domestic large cap core in favor of emerging market equities. We believe that emerging market equity valuations look attractive and that the negative economic momentum with most developing countries is not as steep as seen in developed markets. Additionally, the earnings prospects of emerging markets, while not good, look better than developed markets. In addition to the increase in emerging markets, we have added to our position in commodities as we believe commodity prices have stabilized. These moves should also help to add some protection against further dollar weakness and inflationary pressures.