August Activity

Due to the catalysts at work now and in the near future, I have decided to lighten up the portfolio and go to cash with some holdings. The most obvious candidates to me were the lower yielding blue chips where I was at or near cost basis or in the red. I sold ED, MCD, KO and PG. I am interested in picking up PG and possibly KO again after the correction which I believe is coming, but at a lower cost basis. We have lots of macro events in the hopper, any one of which can escalate and trigger a pullback. Take your pick-Russia/Ukraine, Iraq air strikes, Fed easing ending in October, Israel and Hamas, mid term elections, Europe entering recession again etc.

I am 1/3 in cash. This is a good time for covered calls.