Last week, I mentioned about the reasons why I think market looks fully or over-valued in my opinion. There was a small pullback of few percent points due to the failure of American Health act passage and myriad of other reasons like fed rate hike, geopolitical risks in south china sea, likely OPEC non-compliance of oil quotas, etc. Due to these reasons and others, I think that market is facing some head winds.
I kept steady in implementing my strategy to trim or eliminate positions in companies and raise some cash in hand so that whenever pull back does eventually happen, I’m ready to deploy the cash. I’ve completely sold following companies: AMGN, AXP, BAC, BUD, CAT, CNP, CVS, DIS, DOW, DPS, FLO, GD, JNJ, JPM, KO, MCD, MO, MSFT, OKE, PEP, PM, POT, RAI, SYY, USB, UTX, and WMT.
Over last few weeks, I’ve sold 47 companies in my portfolio, trimming down almost 50%. I feel more comfortable with this size of portfolio at this point of time. However, I’ll be at look out for buying opportunities whenever they arise, currently, I’m seeing fewer. I still have 50 companies and that’s a decent size and fairly diversified by many measures.
What do you think about market valuation, have you considered selling some companies also?