Equity change: reduce energy exposure, increase defensive earnings
We’re continuing to take profits on cyclical stocks and increase the more defensive exposures in the Core Equity Portfolio.
Energy prices have rallied dramatically following the invasion of Ukraine by Russia, and we’re taking profits in stocks where the near term upside is limited due to hedging and high prices could squeeze margins if fossil fuel prices remain high. We’re reallocating the proceeds to stocks with more defensive earnings streams.
Clients who are logged in can access the updated model portfolio files and standard text from our downloads page, and will see the full details of the portfolio changes and suggestions for implementation below.
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