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Sunday, March 6, 2011

March 6, 2011: Bob Brinker's Stock and Bond Market Advice

March 6, 2011....Last week on Moneytalk, Bob Brinker said that the stock market is now in a cyclical bull and expects any corrections to be limited to single digit.

He often talks about his July, 2010 buy-signal at S&P 500 Index 1030. What he never says is, that buy-signal was 353 points above the S&P low of 677 in March 2009. That's a miss of over 35%!

In January, Brinker made some changes to his fixed income allocations. He lowered weightings in Vanguard Ginnie Mae Fund and sold all Vanguard Inflation-Protected Securities (TIPS). At the same time, he increased holdings in Vanguard High-Yield Fund.

Brinker is now recommending a dollar-cost-average approach for putting new money into the stock market. He is projecting that the S&P will reach the "low-to-mid 1400's range within the next year."

How ironic. That was the exact level that he repeatedly called a "gift-horse buying opportunity" between August 2007 and January, 2008. If you bought then, take heart, we may get back to it if he is right this time. :)

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