We're writing to provide updates about changes we're making to the portfolio.

Buying Activity: Add to Boeing (BA)

Following this post, we're going to add to our position in Boeing (BA), buying at an average price of 207.5$/share. Following this purchase, we've raised the size of BA in our portfolio from 1% to 2% (we allocate 3% to this position). We initiated BA last week, you can read the initiation post here. After our initiation, shares of Boeing have had straight days of gains, as of yesterday it was up 7% from where we made our initial purchase. This confirms momentum is picking up in the stock again, and a 2021 bottom may have been in for this stock. On the back of the seasonal strength which we talked about here, we have extra confidence that Boeing is on an upward trajectory. Since today is a red day for the stock, we eye this as an opportunity to add to our position. Note, we still have 1% left to buy Boeing, but we will reserve that for only when Boeing drops below our cost purchase (in other words, we won't buy up from here). 

Potential to add: Meta Platforms (FB) - formerly Facebook

One stock that we really would like to add to, but cannot because it is already at the max weight we allocate, is Meta Platforms (FB) - formerly known as Facebook. Of the 5 FAANG stocks (a common term used to describe pillars of the US stock market), Facebook is the one trading at a lowest forward P/E multiple (FB 23x, AAPL 28x, AMZN 68x, NFLX 48x, GOOGL 26x). The fundamental case for FB remains largely similar to when we initiated the stock (see here), but recently, the movement towards Metaverse has made the investment case more attractive. We believe Metaverse is going to be "the next big thing." We simply think that given the trajectory of Metaverse development, the total market cap for Metaverse as a sector is going to be north of $1 trillion. Who's going to lead that Metaverse sector? We believe it is going to be Metaverse, the company (formerly Facebook). The current market cap for FB is $900 billion, and we believe once the Metaverse transition picks up pace, this market cap will have to grow. 

However, we do acknowledge that the Metaverse reality is years away from us, that's why we're not too aggressive here. Our reason for putting FB on the shopping list is a technical one. Shares are trading around the 200-day Moving Average, and in the past, anytime shares trade around here, we always see an aggressive bounce to the upside. Here is a great opportunity to buy FB if you currently do not have a position, and add if you have the opportunity to.