The Dauphin County, PA Deferred Compensation Plan Tactical Models will remain in their maximum High Risk Category allocations. As of this post, the U.S. and international equity trend indicators and the Balance of Strength Signal are all positive, so the models will maintain their maximum exposure to High Risk Category investments. In the models, there are small changes to decrease stable value exposure, increase bond exposure, and adjust the allocation within the High Risk Category investments. The models are utilizing a high exposure to the T. Rowe Price Capital Appreciation Fund (PRWCX), so the models have slightly less than their maximum stock exposure because PRWCX is composed of roughly 60% stocks and 40% fixed income. We are taking this position with the goal of reducing volatility while attempting to pick up the majority of the upside a fully invested stock allocation would have. Changes to the models will be made the week of January 13th. Should the market environment deteriorate during the quarter, we will either hold the current allocations or make changes to become more conservative. We encourage you to read the report using the link below and Contact Us if you have questions.