Game Plan: Current Ideas on Allocation.

Game Plan

Allocation

These are my current thoughts on asset allocation that we have incorporated into the game plan. First the usual disclaimer for non-clients of our firm: Game Plan sections involve our ideas on investing that we have previously either enumerated with our clients or are based on long lasting relationships and information they have communicated to us about their unique risk/return profiles. Therefore we make no specific recommendations nor do we in any way imply that anything regarding this investment profile would be appropriate for casual readers of this blog. Non-clients of Lumen Capital Management, LLC are advised to do their own investment research or discuss any of this with their own investment advisors. Furthermore these investments are subject to change without our notifying you of any change of investment opinion on our part.

With that said here are our current ideas on sector allocation. We will not give out the names of any of the individual securities that we are purchasing. Most of these purchases were done using Exchange Traded Funds.

Major Market Indices:

Dow Jones Industrials

S&P 500

Nasdaq Composite

Income Related Securities:

Preferred Stock ETFs

Corporate Bond ETFs

High Yield Dividend ETFs

Market Sectors {Sectors we expect to outperform the markets in early 2009}:

Certain Technology

Certain Financials

Materials

Energy

Biotechnology

On one last note: Many of these sectors have had significant moves recently so I would not necessarily advocate following our methodology at this time on your own.