BigStockTrends com Updates Model Portfolio Allocation, Publicly Viewable

Released on: February 14, 2008, 2:28 pm

Press Release Author:

Industry: Financial

Press Release Summary: The recent stock market shake-up and economic turmoil have
prompted to change their model stock portfolio allocation. The
website is now suggesting that investors move to a more defensive posture, and focus
on positions that tend to do well in challenging economic environment

Press Release Body: The suggested sector and style allocation of
has been updated, reflective of recent changes in sector and market cap leadership
as well as a slowing economy. The portfolio has been designed to offer maximum
reward and minimal risk for the scenario investors are likely to experience over the
next several weeks.

The model portfolio\'s goal is to overweight areas that appear to be better
opportunities in the foreseeable future, while under-weighting sectors that are
likely to underperform the overall market during the same time-frame. By doing so,
BigStockTrends believes its followers have a better chance at achieving above
average returns while actually taking less risk.

The most recent update responds to the Federal Reserve\'s recent decision to lower
the Fed Funds rate from 4.25% to 3.0%. Also, the portfolio is more conservative than
usual, as BigStockTrends believes a recession is already underway; certain kinds of
companies perform better than others in a less robust environment.

Also, the major correction from late last year and early this year has inflicted
some technical and psychological damage that can\'t readily be overcome, and may
affect how certain sectors perform in the coming months.

Analyst James Brumley notes \"The investing landscape is different now than it was
just a few weeks ago. The Fed has signaled they\'re desperate by making a couple of
drastic rate cuts, and the recent G7 conference indicated that other global economic
leaders were also concerned about a worldwide slow-down. The U.S. is likely to
already be in a recession, based on rising unemployment and decreased capacity
utilization. Inflation may also continue to rise beyond manageable levels. We
believe investors should adjust their investment portfolios accordingly.\"

The most recent strategic changes include adaptations for inflation and economic
contraction. For instance, the portfolio suggest over-weighting basic materials,
since materials prices - and their underlying stocks - tend to rise rapidly when
inflation is higher than average. Simultaneously, as a cooling economy continues to
temper consumer spending, consumer staple companies (such as grocers, personal
products manufacturers, and food processors) tend to outperform other sectors. They
are considered \'defensive\' stocks in that economic contraction can\'t stifle demand
for basic necessities.

The modified portfolio also recognizes a shift in the leading market cap growth and
styles. Last year\'s leaders were all growth stocks; the new allocation favors value
stocks, as the BigStockTrends analysis team has spotted clear, new leadership from
value stocks in just the first few weeks of 2008.

To view the updated model portfolio, click here.

About is a development project of devoted entirely to
investors and traders who focus exclusively on stocks and ETFs. All facets of stock
ownership are examined, including swing trading, long-term investing, portfolio
allocation, and money management. Specific stock and sector ideas are provided on a
regular basis. The site\'s free e-newsletter delivers all of this information
straight to each reader\'s e-mail in-box.

To learn more about BigStockTrends click below.

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