At the beginning of each new year, take a look at your portfolio allocation across different sectors, for which there should be at least 5.
Be Overweight in sectors you think will be do well – up to a maximum of 35% in one sector.
2CentView is overweight in Tech and Financials and underweight in commodity/oil.
This view is unchanged, with core positions in TECH: $FB and $GOOG, $SPWR (Sun Power – solar), $SWKS (Sky works) and $NFLX (Netflix), AND Financials: $MS, $HSBC and $DLG.
Tech will continue to drive costs lower via the cloud and shape the we work and play.
Biotech is also making beakthroughs, but risky. 2CentView has a core position in $CELG (Celgene) – if there is a cure for cancer, there is a good chance CELGENE would be involved.
Financials should do well when rates go higher and economies recover, which the UK and the US are on course.
Top Picks: $MS (Morgan Stanley) 32 vs. FV=$40, Yield 1.7%: Stock was hit hard on last earnings as Fixed Income still shows volatility in earnings. $MS Have addressed this by cutting the department and focus on equity underwriting and wealth management.
$HSBC – 537 vs 620 Yield, 6%. Gulliver is determined to cut down the size of the business and improve return on capital. You are paid a nice 6% dividend while you wait for his turnaround plan to take shape.
Sectors to keep an eye on are Energy and Commodity – but is still perhaps too early. Credit default Swaps are very wide and Earnings too unpredictable and the winter is SO WARM!
Keep plugged into 2CentView to get idea updates in these sectors.
If you want to buy now, 2CentView top pick is $BP , 354 vs 400 FV, Yield 5.5%, solid balance sheet, and can withstand low prices.
Finally always keep a look out for recovery plays – QUALITY companies which have been beaten down but can recover – Rolls Royce (FV=550), G4S (FV=300 vs 225), VRX (FV=185 vs 102).