On this page you will find our current picks and holdings that we are recommending as well as other market data and investing or trading ideas. You’re free to use this for yourself as you see fit. Our goal at Pelican Wealth Advisors is to educate, help people manage risk, and help our clients achieve their goals. *
Aggressive Growth Portfolio
Update from Friday 8/23/19 – We further reduced risk exposure by removing our ETF positions and continue to lighten up on technology related positions.
Below are our current aggressive portfolio recommendations and positions. We recently rebalanced due to the sharp drops in the market that began at the beginning of August stemming from the continued trade tensions. We removed high momentum stocks with extreme P/E’s and replaced them with more defensive stocks and dividend paying stocks with dividends greater than the current 10yr Treasury Yield of 1.56%. The current average dividend yield is 2.04%. All of our indicators have turned negative and are currently in sell mode. So, we are maintaining a defensive posture for now patiently waiting and building the potential buy list as we average into the market with cash raised during the first week of August.
Aggressive Growth Portfolio - Daily Picks as of 8-20-2019
|AEP||American Electric Power||Utilites||Regulated Electric||2.96%|
|BAH||Booz Allen Hamilton||Industrials||Business Services||1.26%|
|BSX||Boston Scientific||Healthcare Sector||Medical Devices||0|
|CCI||Crown Castle Intl Corp||Real Estate||Diversified REIT||3.11%|
|DIS||Walt Disney Company||Consumer Cyclical||Media-Diversified||2.64%|
|FB||Technology||Internet Content & Information||0|
|GIS||General Mills||Consumer Defensive||Packaged Foods||3.55%|
|HEI||Heico Corp||Industrials||Aerospace & Defense||0.24%|
|IBM||International Business Machines||Technology||Information Technology||4.80%|
|NEE||NextEra Energy||Utilities||Regulated Electric||2.28%|
|PG||Proctor & Gamble||Consumer Defensive||Household & Personal Products||2.48%|
|SUI||Sun Communities||Real Estate||Residential REIT||2.04%|
|T||AT&T||Communication Services||Telecom Services||5.83%|
|V||Visa||Financial Services||Credit Services||0.56%|
|VZ||Verizon Communications||Communication Services||Telecom Services||4.23%|
|WM||Waste Management||Industrials||Waste Management||1.71%|
|XOM||Exxon Mobil||Energy||Oil & Gas Integrated||5.01%|
|YUM||Yum Brands||Consumer Cyclical||Restaurants||0|
High Income Portfolio
“High Yield markets were lower again last week as global risk aversion remained high. High Yield continues to significantly outperform equities to the downside however. Corporate credit is proving itself once again to be an effective defensive equity proxy amid increased volatility in stocks. While loans and high yield will follow the general trend of equities, they should do so with significantly lower volatility. Meanwhile, current yields are competitive with “equity-like” returns. The “junk bond” market could be considered a defensive form of equity risk versus an aggressive form of bond risk” – Symphony Asset Management (Larry Holzenthaler) Monday, August 19, 2019.
Below are our current High Income Portfolio recommendations and positions. Designed to provide returns that could be comparable to the stock market but with 50%+ less risk/volatility or draw downs. This portfolio is designed with a 7% dividend target (high yield) and to provide capital appreciation in order to produce results that could be comparable to stock market like returns. “High Yield” has a correlation to the stock market’s moves, it’s supposed to rise as the stock market rises plus pay the high dividend. The holdings are bond mutual funds for two reasons: 1) They are liquid, as you can sell any day when the 4:00 tickets go in on mutual funds. 2) We rely on the analysts and research departments of the mutual fund companies to pick the individual bonds. We monitor the mutual fund moves to ensure correlation to the stock market is on target.
High Income Portfolio 8-20-19
|Symbol||Name||Current Yield||Avg Duration|
|ANHIX||Angel Oak High Yield Opportunities Institutual Class||6.10%||3.4 yrs|
|DDJIX||DDJ Opportunistic High Yield Institutional Class||10.20%||3.3yrs|
|EEIIX||Eaton Vance Emerging Market Local Income Institutional Class||10.60%||5.0yrs|
|FJSYX||Nuveen High Income Bond Fund Institutional Class||6.50%||5.9yrs|
|MHYIX||Mainstay MacKay High Yield Corp Bond Fund Institutional Class||5.90%||3.0yrs|
|WHIYX||Ivy High Income Fund Institutional Class||6.70%||3.0yrs|
Conservative Fixed Income Portfolio
Below are our current Conservative Fixed Income Portfolio recommendations and positions. This portfolio is designed for safety. It consists of short duration investment grade bond funds that pay a monthly dividend. Again, we use the bond funds for liquidity purposes, as we can liquidate when the 4:00 mutual fund tickets go in. The goal of this portfolio is total return. It currently pays an annual dividend of 4.77% and has a good history of capital appreciation as well. In the screening process we came up with these funds because: 1) They had very little to no draw down during the 4th Quarter of 2019 when the S&P-500 dropped 16%. 2) They pay a monthly dividend. 3) They have a greater than 3% yield. 4) They are heavily weighted investment grade and short duration.
Conservative Income Portfolio 8-23-2019
|DHEIX||Diamond Hill Short Duration Total Return Institutional Class||4.70%||1.3yrs|
|LLDYX||Lord Abbett Short Duration Income Institutional Class||3.98%||1.7yrs|
|PIMIX||PIMCO Income Fund Institutional Class||5.62%||0.91yrs|
* Disclaimer – Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Diversification does not guarantee profit nor is it guaranteed to protect assets. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896. The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia. The Dow Jones Corporate Bond Index is a 96-bond index designed to represent the market performance, on a total-return basis, of investment-grade bonds issued by leading U.S. companies. Bonds are equally weighted by maturity cell, industry sector, and the overall index. The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate. The index is made up of measures of real estate prices in 20 cities and weighted to produce the index. The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. You cannot invest directly in an index. Consult your financial professional before making any investment decision. * Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
** Lifetime income annuities are subject to the claims paying ability of the insurance company.