Q: Hi 5i, Based on portfolio analytics I am underweight consumer defensive and overweight industrials. I'm thinking of selling my CP and buying DOL for a long term hold. CP has been a laggard in my portfolio over the past four years. I realize DOL is expensive and earnings are next week. Would appreciate your thoughts on this switch. Thanks
5i Research Answer:
DOL is certainly not cheap, but it has been 'expensive' for more than a decade and still delivered a 677% return during that time. CP of course is more economically sensitive but it does have a solid long term record (20 years 985%). We would still be fine with this switch, looking at it from a portfolio management perspective rather than a profit-maximizing guess. We continue to have strong faith in DOL.