An interesting view on 401K management

I found this PDF online. The author is a manager on 401K plans. He made couple interesting points in his newsletter "A Technical Review Of The Markets"

For those of you with busy schedule, here are some highlights.

As you can tell there are no areas currently in the market that are screaming “BUY ME” currently. This is because the markets have gotten a bit too far ahead of themselves and a correction is imminent.

 We continue to highly recommend that you wait to add exposure or rebalance to the model until the market either corrects or consolidates its recent moves.

He did touch couple interesting points, such as how to manage future contribution, which could be very different than current holding. He also hit allocation within the same asset class, re equity.

Current 401k Allocation Model
15% Cash + Future Contributions
These options include:
Stable Value, Money Market, Retirement Reserves
35% Fixed Income
Bond funds are a play on the direction of interest rates
Short Duration, Total Return & Real Return Funds
50% Equity
The majority of funds track their respective index.
Therefore, select ONE fund for each category. Keep it
simple.
30% Equity Income/Balanced/Growth & Income
20% Large Cap Value
0% International Value
___________________________________
ALL NEW MONEY (Monthly Contributions)
100%Cash Option

Overall his understanding of market is pretty close to mine, for example, Risk = Loss, Managed Risk = Returns.

Total Return Investing
We believe that portfolio should be designed for more than just capital appreciation. There are times when markets do not rise.

I believe he is talking about the past decade. If the market is not moving, then you'd better do something to avoid losing money.