Trade Alert For Equity & ETF Models Only
With the Fed meeting now behind us, and just options expiration left on Friday, we are using the weakness from the last couple of trading days to fill out the rest of our portfolio for the Santa Claus rally into year-end.
As such we are making 2-key adjustments. First, we are adding slightly to our equity holdings mostly by adding to our S&P 500 index trading position. Secondly, we are rebalancing our bond portfolio to lower volatility and increase yield as we head into 2022.
Equity Portfolio
- Sell 100% of GSY (Short-Duration Bond Portfolio)
- Add 6% of TFLO (Floating Treasury Bonds)
- Increase IEF (Intermediate Treasury Bonds) to 4% of the portfolio.
- Increase Preferred ETF (PFF) to 10% of the portfolio
- Reduce Apple (AAPL) by 0.5% to take profits.
- Add 0.5% to Adobe (ADBE) on earnings-related weakness this morning.
- Add 1% of Asana (ASAN) to the portfolio following its recent correction.
- Add 2% of the portfolio to the S&P 500 Index ETF (SPY) bringing the trading position to 7%.
ETF Portfolio
- Sell 100% of GSY (Short-Duration Bond Portfolio)
- Add 10% of TFLO (Floating Treasury Bonds)
- Increase IEF (Intermediate Treasury Bonds) to 4% of the portfolio.
- Increase Preferred ETF (PFF) to 10% of the portfolio
- Add 1% to Technology Select ETF (XLK) bringing total weight to 14%
- Add 2% of the portfolio to the S&P 500 Index ETF (SPY) bringing the trading position to 7%.
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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