Trade Alert – Equity Model
This morning, we bought ABBV back up to its model weight. The stock was hit by over 12% yesterday, which, in our opinion, was a lot given the news on the Phase 2 trial termination of a Schizophrenia drug. Conversely, Walmart has become very expensive and is heading into earnings next week. The stock is up 60% YTD and extremely technically overbought. We are reducing it by about half a percent. Following the reduction, we are still decently overweight the position versus the S&P 500.
Equity Model
- Reduce Walmart (WMT) to 1.75% of the portfolio.
- Increase Abbvie (ABBV) back to the target weight of 5%.
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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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