Transcript
Hello, everybody, welcome to Monday, the S&P 500 was down about .2%. Today, overall, our accounts were actually up today, which was great. And it was led by technology and clean energy that really helped us out.
Today, I want to spend a little bit of time today talking about a question that’s come up several times is when do I decide to sell something that we have in the portfolio? Well, it’s kind of interesting, I’m not usually selling something, because I think it’s gonna do poorly, or those types of things. I’m selling something because I found something else, that’s better. And so I look at the portfolios as a competition. So let’s say we have 10 to 15 different Exchange Traded Funds in a portfolio. Well, there are another 2600 ETFs out there that I could put into that portfolio. And so it’s like King of the Hill, all of the pieces that are in the portfolios are fighting to stay in and those 2600 are fighting to get in. So if you take those 2600, we can eliminate roughly 1000 of them, because they have things that I don’t want to get involved with, they have leverage, they have very high volatility, or they’re just too narrow. And so that leaves about 1600, I have a very specific methodology to try to figure out, you know, which ones out of those, I think will do well here in the near future. And then I want to compare that to what’s in there and see how I feel about, you know, what we already have. And so, if I think what I have found, which this weekend, I did, I found a couple of ETFs I’m very interested in, I think they’ll do better than some of the pieces that we have in the portfolio. And that’s why I make those changes, and then what gets knocked out of the portfolio is kind of the weakest. And if I do a big process, again, to rank, the holdings that we have that 10 to 15 ETFs. And the bottom two are going to get knocked out in this case, because I’m bringing in two.
And so that’s the process, it’s it’s King of the Hill, it’s just trying to get it and it’s why we’re outperforming you know the markets for the year overall. And that’s that’s that’s, I think, a big piece. It’s I hope that answers that question. As far as what’s going to happen, I think this week, and maybe even for the rest of this year. I think a lot of this is going to revolve around the stimulus talks. And so there wasn’t a lot of information from that today. But let’s see what comes tomorrow and let’s see what happens tomorrow. I look forward to talking to you then. Thank you very much.