Conservative · Stocks to Consider and Updates

Allocation Update – Conservative Porfolio

Considering first quarter earnings and guidance, sector rotation, trade issues and other factors that may affect holdings in the various accounts over the next twelve months, I am making a few allocation changes to each of the three portfolios.

       Today we are looking at the conservative list. Consumer staple stocks have been out of favor for some time and a turnaround is not likely anytime soon. Therefore, I am trimming my position in good-quality Colgate-Palmolive from 9% to 7%. Deere & Co. provided a strong start to 2018 and indications are for the company to continue to deliver both domestically and abroad. Deere moves up 2 percentage points to 11%. United Parcel Service continues to provide above-average growth, but in the short-term the shares are likely to perform in line with the market and higher energy prices will cause some headwinds for the No. 1 package provider. UPS moves from 11% of the pie to 9%. Verizon Communications should continue to do well as I look ahead to the remainder of the year and bump up the position a notch to 7%. Finally, the Wisdom Tree International Equity fund that joined the portfolio last year should continue to deliver solid returns and provide conservative investors an all-important exposure to foreign markets. DWM goes from 8% to 9%. All the other candidates remain unchanged.


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