{"id":8249,"date":"2018-10-15T14:05:07","date_gmt":"2018-10-15T14:05:07","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=8249"},"modified":"2018-10-15T14:05:07","modified_gmt":"2018-10-15T14:05:07","slug":"how-clients-are-positioned-for-q4-18","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=8249","title":{"rendered":"How Client&#8217;s Are Positioned for Q4 &#8217;18"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/GfxlpDClalo\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<p>Since this blog&#8217;s last update on <a href=\"https:\/\/fundamentalis.com\/?p=7910\">portfolio positioning<\/a> in early July &#8217;18, the weightings of the positions have changed little in the last three months.<\/p>\n<p>With the creation of the Communications sector, Technology&#8217;s sector weighting has fallen to 20%, which was more in line with client&#8217;s weighting as of June 30, &#8217;18.<\/p>\n<p>Clients remain neutral-to-underweight Technology, Financials, Consumer Discretionary, and some assorted value stocks that remain &#8220;uncorrelated&#8221; to the cap-weighted indices.<\/p>\n<p>Probably the biggest shift that has occurred below the surface is the continued increasing of Emerging Markets and non-US portfolio weights through the third quarter, 2018.<\/p>\n<p>Clients are long VWO and EEM, and the OakMark International Fund managed by David Herro is the third position since clients should have access to Non-US developed markets as well.<\/p>\n<p>The goal is to boost client&#8217;s EM and Non-US weighting to over 10% by the end of 2018.<\/p>\n<p>China represents the largest emerging market and the world&#8217;s 2nd largest economy. The trade talks are worrisome for sure.<\/p>\n<p>Goldman Sachs came out this morning and noted that iPhone sales have started to &#8220;rapidly decline&#8221; in China (<a href=\"https:\/\/seekingalpha.com\/news\/3397236-goldman-sees-rapidly-slowing-iphone-demand-china\">their words, not mine<\/a>) but the analyst kept his 80 million expected unit iPhone sales for calendar Q4 &#8217;18, which given the comment was somewhat surprising. (China represents roughly 18% &#8211; 20% of Apple&#8217;s revenue and 22% &#8211; 25% of Apple&#8217;s operating income, with y\/y China revenue growth between 10% &#8211; 20% the last 4 quarters. Apple&#8217;s fiscal 4th quarter end 9\/30.)<\/p>\n<p>This blog is trying video for the first time with this post, and would welcome readers constructive thoughts and comments. As the old saying goes, I&#8217;ve got a face for radio.<\/p>\n<p>It was a busy weekend for blogging: there is a post the last 4 days.<\/p>\n<p>Thanks for reading.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Since this blog&#8217;s last update on portfolio positioning in early July &#8217;18, the weightings of the positions have changed&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[90,173,102,214,207],"tags":[],"class_list":["post-8249","post","type-post","status-publish","format-standard","hentry","category-apple-aapl","category-emerging-market-etfs-eem","category-emerging-markets","category-international-non-us","category-portfolio-allocations-and-weights"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8249"}],"version-history":[{"count":3,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8249\/revisions"}],"predecessor-version":[{"id":8252,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8249\/revisions\/8252"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}