Tuesday, September 22, 2015

Selling HAL, Buying AMGN, VRX

The market (S&P 500) is down over 1.5% today as I write this....

Looking at the portfolio, I tend to be underweight life science, medical, healthcare, biotech...all areas that will benefit from an aging population (me included).  I'm also heavy in energy and industrial, so I decided to sell HAL today.  Nothing against HAL, except of course really low oil prices, which will prevent capital spending on oil exploration, which really hurts Halliburton for awhile.  That coupled with a pretty small dividend, I might as well move to something with more growth potential, heh? Anyway, believe it or not, I was up around 13% on my HAL investment (over 3 years, ugh).

Here is a breakdown of my "sectors" from Fidelity (before my trades today) :

So selling HAL (energy) and adding healthcare makes some sense... as would reducing the industrial exposure a bit, but they are just so well priced right now I can't resist, especially CMI....

In the health sector, I've been watching GILD, AMGN, ANTM, MCK, and VRX.  I already own all of these except VRX, GILD, ANTM, and MCK in my taxable stock account, and I've been waiting for a good entry point.  Hillary tweated today that she would like to punish drug companies, and even named VRX (Valeant), which sent the stock down over 5.5% today....hah, a good entry point is born.  Thank you Hillary (wow, did I really just say that?)

Started a position 1/3 at $116 ish.  I know, no dividend, but I really like the growth:

I also added a little to my AMGN position, which is now almost a full one.  Adding VRX to the Chump IRA is not ideal, I don't tend to like no-dividend stocks, but in this case, it's where the cash was, and I could use some growth.....

That's all for today.