With earnings season on the horizon, the market mood is fragile enough that I want to cut a few names from the Buy List before any storms start blowing.
First, sell Investors Bancorp (ISBC). The upside is limited here after the company agreed to get acquired. I think we’ve gone as far as we can.
While you’re at it, sell Mueller Industries (MLI). Growth is slowing in China and copper prices may have topped out for the time being.
There’s no sense in sticking around in either name for the time being. Pull the plug. If conditions improve for MLI in particular, we might come back.
Either way, stay liquid for now. We will have a replacement prior to next month’s issue.
If you are Inner Circle Subscriber following the Model Portfolio, liquidate your ISBC position. Hold the cash.