Effective with today's expiration of options we are deleting Reynolds America, symbol RAI, from the trading portfolio. RAI remains an excellent company, but it has moved up beyond a price we think comfortable for trading at this point. If it declines in price we will reconsider.
In the place of RAI we are doubling our exposure to AT&T, symbol T, and adding 25% exposure to Altria, symbol MO. We also are doubling our exposure to Realty Income, symbol O, since the of value of the hedge fund has moved up enough in the last month to allow room for an additional trading position.
All these moves is in response to the belief that the current move up in the market is temporary since the economy is now in an obvious downturn again which could lead to another recession in 2012. The new stocks are more defensive in nature going forward.
We are still looking to end positions in RRD, FTR, GS, ARCC, and HTS as previously mentioned by year end. Today we adding SCCO as a possible sell candidate as well.
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