Trade Alert For Equity & ETF Models
This morning we sold our positions in IAU and FXE in both models and added 0.5% of utility exposure via DUK and XLU.
We still think the market may bounce but recognize IAU and FXE will likely lag in a bounce. Furthermore, we have a LOT of gains that we have taken this year in various positions, so we are starting to do some tax loss harvesting heading into year-end. We have some other candidates for tax loss selling as well and are looking at some strategic swaps if the current rally continues.
Utilities have gotten hit hard recently and are now grossly oversold. The yield on DUK, for instance, is approaching 5%.
Equity Model
- Sell 100% of both iShares Gold Trust (IAU) and Guggenheim Currency EURO (FXE)
- Buy 0.5% of Duke Energy (DUK)
ETF Model
- Sell 100% of both iShares Gold Trust (IAU) and Guggenheim Currency EURO (FXE)
- Buy 0.5% SPDR Utilities Sector (XLU)
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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