Trade Alert For Equity And ETF Models Only
For the second time this year, we are rebalancing our energy holdings back to model weights at the market open this morning.
Energy stocks are grossly overbought and the price of oil is way above fundamental demand levels. That demand will worsen as a recession sets in this year, leading to a reversion in energy prices. We are taking profits now and will look to reduce holding sizes as needed later this year.
Equity Model
- Reduce Exxon Mobil (XOM) to 2% of the portfolio.
- Reduce Marathon Oil (MRO) to 1.5% of the portfolio.
ETF Model
- Reduce SPDR Energy ETF (XLE) to 3% of the portfolio.
