As I mentioned in yesterday’s blog, I expect the market to retest its August 24 lows a few more times between now and the end of October.
The best way to prepare for hedge against volatility is by realigning your portfolio for maximum performance. If you want to avoid many of the headaches that come with fall trading, start by trimming the dead weight in your portfolio. Ensure smooth and steady returns by sticking with more conservative stocks.
And you can do this by checking your stocks in Portfolio Grader. When you run your holdings through this screening tool, take note of each stock’s Quantitative Grade (the current level of institutional buying pressure) and each stock’s Fundamental Grade (a weighted blend of eight financial metrics). Also check which of your stocks are rated as Conservative, Moderately Aggressive or Aggressive. Shoot to have 60% of your holdings in Conservative stocks, 30% in Moderately Aggressive and 10% in Aggressive.
I can’t stress this last point enough because aggressive stocks are the first one to take a beating in a correction, so you’ll want to limit your exposure to these "spicier" stocks. To get you started, here are 32 aggressively-rated stocks you’ll want to steer clear of in the coming months.
|Symbol||Company Name||Quantitative Grade||Fundamental Grade||Total Grade|
|ABX||Barrick Gold Corp.||F||D||F|
|ASNA||Ascena Retail Group Inc.||D||D||D|
|AU||AngloGold Ashanti Limited||D||D||D|
|CLR||Continental Resources Inc.||F||D||F|
|CNX||CONSOL Energy Inc.||F||F||F|
|CPG||Crescent Point Energy Corp.||F||F||F|
|EGO||Eldorado Gold Corp.||F||D||F|
|GLNG||Golar LNG Limited||F||D||D|
|GNW||Genworth Financial Inc.||F||D||D|
|GPOR||Gulfport Energy Corp.||F||D||F|
|KGC||Kinross Gold Corp.||D||D||D|
|LPI||Laredo Petroleum Inc.||D||D||D|
|MRO||Marathon Oil Corp.||F||F||F|
|MTW||Manitowoc Company Inc.||F||D||D|
|NBR||Nabors Industries Ltd.||F||D||F|
|RICE||Rice Energy Inc.||D||D||D|
|RRC||Range Resources Corp.||F||D||F|
|SPN||Superior Energy Services Inc.||F||F||F|
|SWN||Southwestern Energy Company||F||F||F|
|TCK||Teck Resources Limited||F||D||F|
|TRGP||Targa Resources Corp.||F||D||F|
|WFT||Weatherford International plc||F||D||D|
|WLL||Whiting Petroleum Corp.||F||D||F|