The market is overvalued by 20% after last year's rally and bond yields remain at record lows, so the traditional 60/40 stock/bond split is not optimal, says Stephen Blumenthal, portfolio manager for the CMG Global Equity Fund. Blumenthal says a better way to allocate assets is 33% in stocks, 33% bonds and the final 34% in a tactical trading portfolio. His most recent tactical trades are going long the SPY and TLT exchange traded funds, as well as the Pro Shares Ultra Short Yen ETF.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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