Allocation Model – Income

Income I am not adding any new income positions to the income portfolio at this time and, therefore, will update the allocation model as follows:

       I am going to bump up Dow Chemical 1% point to 9%, as I believe a stronger economy will provide some tailwinds for the sector and Dow, in particular. Likewise, with energy prices moving higher the ETRACS Alerian MLP Index ETF also gets a boost to 7% of the pie and French oil and gas giant Total, SA goes from 7% to 10%. With the premature removal of Verizon Communications last month, the telecom sector has gone along for the ride with the post-election rally. Verizon remains in the conservative list, however. With the absence of VZ, the iShares Global Telecom ETF, which includes Verizon, increases 3 percentage points to 8% of the portfolio. All other candidates on the list remain as they were in November.

income-allocation

       If I find a worthy choice to expand the income list over the next few months, I will provide an update to the allocation model.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: