Pullback in Nasdaq Composite Index has us taking gains on this ETF and moving on
You should have received this week’s Tematica Investing Weekly Update earlier this morning. If you haven’t read it yet, you can click here to read it, as we made the move to add even more Costco (COST) shares to the Tematica Select List, while also providing some thoughts on our positions in HACK, GOOGLand FB.
Soon after that issue was emailed to you, I got my hands on some data that has me rethinking our position in PowerShares NASDAQ Internet Portfolio ETF (PNQI). Let me explain . . .
Over the last few days, the Nasdaq Composite Index and technology, in general, has started to pull back. We’ve shared our views on how expectations for the domestic economy and earnings expectations are poised to be reset and we suspect that view is gaining traction with the larger investment community. As that happens, we are likely to see investors shed positions to preserve gains achieved thus far in 2017.
On individual stocks positions, we continue to see the positive push of thematic tailwinds and we could see opportunity lie in the coming weeks to scale into several positions on the Tematica Select List, like we did with Costco (COST)this morning.
At the same time, we are also prudent investors and that has us issuing a “Sell” call on shares of PowerShares NASDAQ Internet Portfolio ETF (PNQI) and preserving the more than 20 percent gain in the position since we added it last November. While this will modestly reduce our exposure to the Connected Society investment theme on the Select List, we have a number of other positions that offer various exposure points to this multi-faceted theme.
Bottomline on PNQI Shares:
- We are issuing a sell on PowerShares NASDAQ Internet Portfolio ETF (PNQI) shares and removing them from the Tematica Select List.
