Trade Alert – Equity, Dividend Growth & ETF Models
This morning, we rebalanced our core models, having rebalanced the thematic models last week. The bulk of the changes were in the equity model. There is no change to the total equity exposure in the equity model and a 1% increase in the sector model.
We are adding META, replacing AAPL, which we exited two months ago. We are selling OKE. It has been underperforming in the natural gas pipeline sector. We are adding to its competitor, KMI, to replace it partially, and we may add a little more to the energy sector in time. We are reducing NLY. While we think its prospects with a steepening yield curve are good, its price-to-book value is high. This is cautionary, as the company will likely issue new shares, diluting existing shareholders. Additionally, we are taking profits in GOOG and bringing it back to its model weight. We are adding .25% to NVDA and reducing PLTR by the same amount.
Equity Model
- Reduce GOOG to 4% of the portfolio, PLTR to 3.5% and NLY to 2%
- Sell 100% of OKE
- Initiate a 2% position in META
- Increase NVDA to 3% of the portfolio and KMI to 2%.
ETF Model
- Increase AMLP to 2% of the portfolio.
Dividend Growth Model
- Rebalance all dividend positions in the portfolio to 3.33% of the total.
- Rebalance the growth holdings to 5% of the portfolio.
- NLY is rebalanced to 2% of the portfolio. UGI is unaffected.
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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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