Betting the News.
The last thing I want to do is bet the news, especially when that “news” is created by so untrustworthy a source as the current White House and Administration.
I remain focussed on America-centric stocks confident in the power of our consumer and the President’s determnation to keep the market happy in the election run up. However trade wars and China in particular are potential black swans. Remove them and we need at least to reset the portfolio:
– Gold: less obvious a winner until we see interest rates come down.
– Technology: one or two shares with international markets become interesting.
Therefore over the weekend:
– Gold: I pruned all gold stocks by 50%, happily taking profits aross the board. Watch for any FED reduction in interest rates, flapping swans or decline in dollar which would lead me to strengthen the holdings once more. I have no quarrel with the individual stocks, they are outstanding.
– Other holdings: I had been fuly invested so looking for some cash I pruned back solid holdings in EPD, GWPH, and NRZ by 20%.
– Technology: I have added to MSFT and ZBRA and bought starter holdings in CDNS, CDW, and BABA – about which more another day.
– Other Buys: I supplemented my cannabis holding in GWPH with IIPR, the high growth cannabis property stock and also bought PAGS, the extraordinarily successful Brazilian bank – again more another day.
The aim has been to move slightly from the exclusively American centric portfolio by adding a few exceptional companies that are more internationally spread.
All the best, James.
James is advisor to the King Group Wealth Managers at Merrill Lynch.