Allocation Model – Aggressive
Today I am making a few changes to the allocation model for the aggressive portfolio. I am lowering the allocation for Foot Locker from 10% to 5% as the retailer of athletic footwear and apparel is running into significant headwinds from the likes of Amazon.com. The earnings report last month for the first quarter of fiscal 2017 was disappointing as well. The stock has also been brought down by a lack of interest in the entire retail sector. I still believe the company has ample room to grow both here at home and internationally, but the stock is less exciting than originally proposed back in May of 2014. The shares did reach a high point of $79 per share at the end of last year, but are now back to where they entered the portfolio at around $48.50. Pending the results of the company’s next earning’s release in August, I am going to hold on for now, but FL is indeed a stock to watch. To take up the slack, I am boosting the share of the pie for International Paper from 9% to 12%, as I believe the prospects for IP are improving and the stock should do well over the next twelve months. I also like the trend for companies in emerging markets, thus the iShares MSCI Emerging Markets ETF climbs two percentage points to 8%. All other positions remain as they were back in November of last year.