A Good Time to Rebalance

If you have found yourself overweight in particular securities it is a good time to look at doing a little rebalancing. We had done our rebalancing some weeks ago so we do not personally need to do more right now. Although we need to get our fixed income model portfolios rebalanced.

So many issues have shot higher–for instance the newer NiSourse energy 6.50% fixed reset preferred (NI-B) shot all the way to the $27.50 area yesterday. The chart on this one is crazy–see it here. I know some like Gridbird took the opportunity to sell his position. The issue is still trading in the $26.85 area so if you own 400-500 shares one could let go of 1/2 and look to reenter down the road.

We have had numerous issues shoot higher–the American Homes 4 Rent issues and the Algonquin Power and Utilities notes (AQNA) are 2 that shot up. We simply are holding because even with the nice gains we like the balance of our portfolio now and even though we could lock down a couple extra dividends worth of gains now we don’t believe these are overvalued at current levels so shouldn’t back off too much.

We are not advocating ‘trading’ here–just some opportunistic profit taking in overvalued securities.

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