Trade Alert – Equity & ETF Models
Last November, we added value stocks to our portfolios as part of a rotation from growth. That has played out nicely, but many of those stocks are now extremely expensive and overbought technically. Conversely, as we have written much about lately, SaaS stocks are now cheap on a fundamental basis and extremely beaten up.
Therefore, we are making some minor portfolio adjustments today to take profits in the “value” side of the portfolio (selling Altria (MO) and Visa (V)) and adding to the beaten-up software sector by adding to our existing position in Microsoft (MSFT) and initiating two starter positions in ServiceNow (NOW) and Salesforce (CRM). This change does not affect our total equity weighting.
In the ETF model, we are swapping our technology weights by reducing XLK and MGK by 1% and adding 2% of IGV.
Equity Model
- Sell 100% of MO and V.
- Add to MSFT
- Initiate a 1% position of the portfolio in NOW and CRM.
ETF Model
- Reduce XLK and MGK by 1% of the portfolio each.
- Initiate a 2% position in IGV.
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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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