Preparing for a Bold Move

By on February 11, 2020

Casualty of WarIn my opinion, the current bifurcated market has created an opportunity. I’m preparing moves in the SMA Portfolio to capitalize on what may be an unfolding replay not unlike the years 1999-2000.

Currently energy equities have been shunned due to weakness in the oil and natural gas commodities exacerbated by the Coronavirus, the piling of investment dollars into tech related companies (e.g. Tesla), and a tilt by investment managers towards ESG defined as environment, social justice, and corporate governance.

Therefore, I am attempting to sell the portfolio’s fixed income type holdings including Vanguard Total Bond Market ETF (BND), Western Asset Emerging Markets Debt Fund (EMD), iShares Preferred and Income Securities ETF (PFF), Templeton Global Income Fund (GIM), and Morgan Stanley Emerging Markets Debt Fund (MSD).

Upon receiving the proceeds from these fixed income sales I plan on purchasing unloved energy related equities, ETFs and/or closed end funds. It is my opinion that energy is extremely out of favor and due for a bounce. I will hold these for several weeks, or even months. A profitable outcome is certainly not assured.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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