Author:  Chris Rees

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Disclaimer:  Chris Rees owns BAC and IMOS in his Covestor TenStocks Model.

August 30, 2010:  The S&P 500 has fallen approximately 13% between August 27, 2010 and its recent April 23, 2010 high and being 90% cash during this period was not a bad place to be. The lower market in August allowed us to put a bit more money to work. We added Chipmos Technologies (IMOS) and Bank of America (BAC). We believe both will contribute to long term future performance.

We expect the market to continue weak through to year end. With our still defensive stance of 65% cash, we are ready to put more money to work as opportunities present themselves but only in a patient, disciplined and considered fashion. All in all, we are pleased with how the portfolio has performed since its May 11, 2010 launch but we are also aware that short term performance is statistically meaningless. We are here for the long haul. We manage accordingly.