jfalessio's Blog Posts on People And Picks

Time to Reallocate Portfolios

Sat, 05 Mar 2011 09:09:40

Several of my stocks have gone up in value dramatically and some have remained stagnant.  I think now is the right time to reallocate your portfolio for a few reasons.
1.  Identify stocks that have underperformed and sell them now for possibly a small gain.
2.  Identify business sectors that may become hot and aren't part of your portfolio.  I currently don't own any retail stocks, and I feel like that needs to be part of my group as consumer spending will likely increase.
3. Ensure that your portfolio is properly diversified, but that the stocks you own are the best of their sector.
With that advice in mind I am going to sell C and FSLR.  Citigroup has underperformed in the financial sector, and I don't really feel like there is any compelling reason to believe that C will emerge as a leader and a hot stock.  I am going to sell FSLR because I think based on the state of the union and things I've heard on NPR, solar is a purely speculative play that isn't likely to lead to amazing growth rates or profits any time soon.  I will likely reinvest in another energy company that I will choose at a later date....

Out of Steam

Wed, 05 Aug 2009 11:03:56

The recent rally has been a significant upward climb. There was some news today of weak economic data regarding the service industry.

I suspect that the enthusiasm expressed by investors in the form of this rally has outpaced the actual recovery. There will be some sort of pullback in August. I'm going to wait before buying any more....

Retracement

Tue, 09 Jun 2009 08:45:20

I read an article recently by Jim Jubak on MSN Moneycentral where he talked about the rally getting too hot. He thought that a retracement of 30% was likely. By retracement he meant that 30% of the gains since this rally started would be lost. However, he did cite a level in the S&P 500 that he thought would be a significant indicator of the source of money coming into the market. I believe it was 935, and the S&P as of this morning is at 944. He wrote that the rally appeared to be driven by traders, but that if the S&P breached 935 it would be evidence that money was coming in from the sidelines from investors.

I remain optimistic that the market will continue it's upward path. I think any "retracement" will represent a buying opportunity....