Trade Alert – Equity & ETF Models
This morning, we shifted our fixed income model in the equity and sector portfolios to take advantage of what we believe will be further curve steepening. In the 60/40 models we sold IEF (10yr) and bought IEI (5yr). While the duration of IEI is shorter, we added more to the IEI part of the trade than we sold of IEF. Thus, we are near neutral on a duration-weighted basis versus our prior position. Specifically, net/net, we added 2% in the bond side of the 60/40 models, but again, it’s a shorter duration.
Equity Model
- Sell 100% of IEF.
- Increase IEI to 18% of the portfolio
ETF Model
- Sell 100% of IEF.
- Increase IEI to 18% of the portfolio
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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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