Tactical ETF Portfolio Shift Commentary 7/31/2012

The portfolio changes on the equity side of the allocation coincide with our view that recent market strength is based primarily on policy expectations and that it may not be sustainable given the overall macro environment. To this end, we removed our mid cap allocation to lower equity volatility and moved the proceeds to a more defensive allocation in mega caps and gold. We believe that gold is positioned to benefit from general market weakness and should provide a hedge to fiscal policy concerns and the growing probability of further quantitative easing.