Unfortunately, some underperformance crept in for August. I was not too surprised that my stock picks after having a blistering July, took a break. September has started nicely so we will see how it unfolds.
JCP has continued it's run up and if you held on, and if you still have it, I would take some chips off the table. We have had a good run. At this point some good news is priced in with regard to the holiday season. Of course, it is still cheaper than others, just not so obviously so.
I do not have too much in the speculative realm right now. Of my core holdings I am keeping an eye on LO. Lorillard has been on a downward path lately as tobacco continues to be under ever increasing scrutiny. I do not believe their dividend is at risk, so I think the pullback is an opportunity to add if you are not filled up there.
Overall, my equity exposure is at about 17%. This is up from about 9% last month. This increase is due to my adding SPY calls to buy market exposure. The chart below shows the value of the VIX over the last 5 years or so.
It is clear we are at low levels and so I believe that if you are low on exposure, then calls offer some value. I have been sticking to shorter term (for me) October calls.
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