Both 3D Systems (NYSE: DDD) and the iShares Nasdaq Biotechnology ETF (NASDAQ: IBB) have performed well for the Covestor Opportunistic and Adventurous portfolio recently. I see no reason to change anything.
I realize that a price-to-earnings ratio of (150) (as of November 5) for DDD is quite high. But in my opinion that’s mainly due to the fact that the company is throwing most of its profits back into R&D, as well as acquiring small companies with useful software and hardware innovations.
I believe that 3D Systems remains the preeminent company in an area that’s set to transform manufacturing. The company has been getting some good press recently, so that’s helped the stock price.
As for IBB, I’ve considered selling the fund and switching over to Illumina Inc. (NASDAQ: ILMN), which I personally consider a sound company.
However, this portfolio already has so much volatility in it, so I’ve decided to stick with IBB, since it’s a reasonable way of spreading my bets on an area of the economy that is most likely to catch fire.
I’m going to keep an eye on Robo-Stox Global Robotics & Automation Index ETF (ROBO). One downsides is that it charges a fairly high fee and some of its selections, like John Deere (NYSE: DE), are a little questionable from my point of view.
The investments discussed are held in client accounts as of October 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.
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Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.