The Select Countries model portfolio has recently been updated. Changes to the model include as follows:

Buy MSCI Brazil Index EWZ

     5.0% Position; 15.0% Total Allocation

Buy MSCI Taiwan Index EWT

     5.0% Position; 15.0% Total Allocation 

Sell Cash

     Entire Position

Taiwan is opening to direct investment from China and that should have a positive impact on the Taiwanese economy. In addition, we see Asia as the best positioned for economic recovery due to their better capital position. Taiwan’t economy is also highly geared toward high tech manufacturing and as such is well positioned to benefit from world economic recovery.

Brazil’s fiscal situation has improved dramatically in recent years and they are in a position to fund their economic recovery plans internally. The head of the central bank has the enviable task of trying to keep the Real from appreciating too rapidly due to capital inflows. Brazil’s largest trading partner is now China and recently entered negotiations to conduct that trade in Reals and Renminbi, bypassing the dollar. Brazil will provide many of the natural resources needed to fuel the economic recovery in Asia.

For the complete list of holdings, or for the breakdown of the model portfolio’s asset allocation, as well as its track record, please refer to the Select Countries model page.