Time for another dose of my industry ranks. Here’s the list, complete with the ideas that are most attractive for me to investigate:
Remember, this uses the Value Line Industries, and it can be used in Value mode (green industries), or Momo mode (Red industries) I look to buy from the green list, but I have a tendency to let companies that I own that are on the red list hang around. Momentum tends to persist in the short run, and I have usually trimmed exposure due to my rebalancing discipline.
My next reshaping is not until early July, but I expect that it will be a doozy, because I will redeploy proceeds from National Atlantic, as well as a new slug of cash that I have received. I’m running at 12% cash now, but if you count in National Atlantic, it is more like 18%. That has to come down, so in a month or so, I will have to deploy cash. I’m looking for a downdraft to do it in, but those don’t always come on schedule.
Full disclosure: long NAHC
I’d be interested to know if you include MLPs (ETP, OKS, BWP, etc.) in your reshaping consideration. As an asset class they appear valuable due to their lack of correlation with other classes.
I also would have thought they are out of favor (yields and spreads are historically rather high) which is due to their reliance on the capital markets , but I do see an oil/gas transport in your industry ranks which is in the red zone.
your blog is great, thanks!
Brian