Barbell Strategy To Strengthen Your Portfolio

Barbell Strategy To Strengthen Your Portfolio

Energy Stocks Paired with Homebuilders

Show notes

In this week’s episode, Kate chats with David Wagner, Equity Analyst & Portfolio Manager at Aptus Capital Advisors. Dave discusses his barbell strategy to pair two seemingly disparate sectors for portfolio balance.

In this unprecedented market environment, with macro uncertainties causing intense selling, David is looking at the reasons behind the decline, which include rising concerns about a global recession.

Is a recession inevitable, following the yield curve inversion?

How David uses a barbell strategy, in this case with energy stocks paired with homebuilders.

What big factor those two disparate sectors have in common

Are energy-industry dividends and share buybacks attractive approaches to draw investors?

Which sub-industry within the energy sector David likes right now, due to a growing need for its products and services

Does the energy-sector weighting within the S&P 500 mean it’s under-owned, relative to past weightings?

How has the ESG movement been bullish for the energy industry?

Why the homebuilders sector has been a falling knife this year, despite rising demand.

David disagrees with other analysts that 2022 represents peak earnings in that industry, and why he sees potential for further earnings growth.

Are the effects of institutional home buying exaggerated?

How will higher interest rates affect the housing market?

What is the proper way to evaluate homebuilders, which also shows you the proper time to buy?

Is the traditional 60/40 portfolio simply looking through the rear view mirror in this environment?

Stocks Mentioned In This Episode:

Haliburton (HAL) Baker Hughes (BKR) Tenaris (TS) Pioneer Natural Resources (PXD) KB Home (KBH) DR Horton (DHI)

How to find David and Aptus

Links mentioned in this episode:

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Kate Stalter

Kate Stalter

Kate Stalter is a Series 65-licensed asset manager, with more than two decades of experience in various areas of financial services. As an investment advisor and financial planner, Kate personally manages client portfolios, with a focus on successful retirement, including asset allocation, income generation and tax strategies.

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David Wagner

David Wagner

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