encik wan - Trading Developer on Global Investment and Technical Analysis

Conclusion: 100% cash, e.g. no adjustment

Analysis:

MSCI indices (daily) - US, Emerging market Asia, Europe (2011 Aug 31)
A drop of around 20% for 3 major indices in one month warrants some caution. Since this is a monthly asset allocation review, e.g. no buy or sell except beginning of each month and there is no style restriction, e.g. must buy something, therefore 100% cash is a reasonable conclusion. Even there is a sharp rebound, it will not be done in September 2011. See monthly chart below. Another reason for less than 50% chance of sharp rebound is fear of spread of economic crisis from Europe.

MSCI indices (monthly) - US, Emerging market Asia, Europe (2011 Aug 31)

Note : This is NOT investment advice. Details of asset allocation can be found here