October 27, 2016
It's no secret that there is a lot of uncertainty about the Presidential election, the global economy and where the Fed is going with interest rates.
In reading my inbox, I've heard from a lot of folks who aren't sure what to do with their money and are considering cashing out. Now, taking profits from time-to-time is a smart move, but only if you're strategic about it. There's nothing to be gained by selling a perfectly good stock on a whim, especially given what I expect will happen through year-end.
November is typically a seasonally strong month on Wall Street. After the Presidential Election, the market could "burp" for a few days, but I'd expect any such pullbacks to be short-lived. If history repeats itself, we should rally into Thanksgiving. The period between Thanksgiving and Christmas tends to bring renewed optimism on Main Street and Wall Street. The fact of the matter is Thanksgiving is a happy time of the year, so consumer sentiment tends to rise, rubbing off on investor sentiment in turn.
Thanks to holiday cheer and year-end pension funding, I expect that the stock market will finish the year on a strong note, even if the Fed raises key interest rates in December. Then in the New Year, there will be more new pension funding, as well as the Presidential Inauguration.
So if you're really looking to take profits on any of your current positions, you'll want to make sure that you're only selling stocks that have become more volatile of late. You can do this at any time using my Portfolio Grader tool, and to get you started here's a list of 37 big-name blue chips that should be sold right away:
|Symbol||Company Name||Quantitative Grade||Fundamental Grade||Total Grade|
|ALXN||Alexion Pharmaceuticals Inc.||F||C||F|
|APC||Anadarko Petroleum Corp.||D||C||D|
|COF||Capital One Financial Corp.||D||C||D|
|CS||Credit Suisse Group AG||F||D||F|
|CTSH||Cognizant Technology Solutions Corp.||F||C||D|
|CVS||CVS Health Corp.||F||C||F|
|DAL||Delta Air Lines Inc.||F||C||D|
|DIS||Walt Disney Company||F||C||D|
|F||Ford Motor Company||F||C||D|
|FOX||Twenty-First Century Fox Inc.||F||C||D|
|GILD||Gilead Sciences Inc.||F||C||F|
|KMI||Kinder Morgan Inc||D||D||D|
|LBTYK||Liberty Global Plc||F||C||D|
|LUX||Luxottica Group S.p.A.||F||C||D|
|LYB||LyondellBasell Industries NV||F||C||D|
|MFC||Manulife Financial Corp.||D||C||D|
|MPC||Marathon Petroleum Corp.||D||C||D|
|TSLA||Tesla Motors Inc.||D||D||D|
|UBS||UBS Group AG||F||C||F|
|VLO||Valero Energy Corp.||D||C||D|
|VOD||Vodafone Group Plc||F||C||F|
|WBA||Walgreens Boots Alliance Inc||F||C||D|
|WFC||Wells Fargo & Company||F||C||D|