Steve Leuthold, my favorite fund manager, says this about the market in a recent research report:
"Net equity exposure in the Core, Asset Allocation, and Global Portfolios is now about 47%.
".....Still reluctant to get maximum defensive given the relatively attractive valuations.
".....Intrinsic Value is the only Major Trend category with a positive net reading.
"Our asset allocation portfolios increased the Physical Metals holdings to about 4%, adding to both Gold and Silver positions.
"Budding optimism that had developed in investors back in April has now apparently been completely washed out by the poor August performance. From a contrary standpoint, this is a bullish development, as sentiment measures are now back to March 2009 levels where the stock market ultimately bottomed.
"What would Ben Graham do? Some of the classic valuation techniques developed by Graham would find today's stock market very attractive. Based on current conditions, his Intrinsic Value Model would place a fair market value of 1360 on the S&P 500.
"Select Industries equity portfolio deactivated the Cable & Satellite group, and the Home Improvement Retail group. Replacing these portfolio holdings was a new commitment to the Pharmaceutical group."
Full disclosure: I have owned the Core fund (LCRIX) for many, many years.