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Hotline Portfolio Approach

The Hotline Portfolio Approach comes out weekly on Friday evening.  Changes are made real time throughout the week, and a Current Buy List is sent out daily along with the sector allocation.  You can click here to go to the open positions to see the current Hotline sector allocation and buy list, as well as the full listing of the open Hotline positions. 

The Portfolio Approach is designed to help you keep your portfolio balanced and diversified. This is an integral part of our Hotline service. Our “Current Investing Backdrop” works hand in hand with our twice daily market commentary. 

The purpose of the Hotline is to position investors ahead of the crowd in a balanced portfolio of ideas selected mostly through fundamental analysis. New subscribers can pick up ideas on the Current Buy List that haven't advanced too far. We want subscribers to have a balance of all sectors.

We are not trying to beat the market day to day, but over periods of three to six months (or longer). We are here to help in every way. We want you to have faith and follow our work and guidance. The service is designed to be tailored to individual needs with respect to goal and temperament, but we are not going to avoid asking subscribers to invest in certain ideas because they are always worried or afraid. That is why we do the work. 

The Portfolio Approach is based on a weighting of 20 positions over the 11 S&P 500 sectors and a cash position.  The amount of exposure based on a portfolio of $100,000 would be broken down into investing blocks of $5,000.  The Portfolio Approach has weightings for each sector. Investors should have at least the number of positions in the weighting scale in their portfolio. Subscribers with larger portfolios could have up to 25 positions. For instance, if the sector has a 2 rating, we are overweight the sector, so investors should have at least 2 positions in that sector. We suggest buying one stock from each of the sectors recommended first, if possible. 

The Portfolio Approach also contains a recommendation for an ideal cash position. You do not have to have the exact amount we have as ideal, but you should be following the direction of our cash position window. The idea behind having more cash is for protection and to buy the dips, so don't raise cash and head for the hills.

We also want to make sure that investors are buying in equal dollar amounts (not share count); it helps to make sure one small loser doesn't wipe out a GRAND SLAM.

From time to time, we will ask subscribers to short stocks and adjust cash as warranted by market conditions. You MUST go short or have exposure to the downside from time to time to make money long term. Even when we think the price is right, it does not always mean the backdrop is right to buy stocks. And, although the focus is not day to day trading, some environments are better than others to buy stocks.

Please review the Portfolio Approach each Friday and read our new comments on the sectors and any changes to our weightings and positions that comes out daily.

Have questions?
We are here to help and want you to have success with your subscription. Email us at research@wstreet.com.

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