📊 Improved Allocation Plan
1. Core Holdings (Stable Compounders)
Consistent earnings and defensive traits:
T (AT&T) - steady cash flows, stable telecom exposure.
PM (Philip Morris) - defensive consumer staple, high dividend.
CNP (CenterPoint Energy) - utility stability, defensive ballast.
VRSN (Verisign) - cash-generating monopoly-like business.
➡️ Suggested Weight: 25-30% combined
2. Growth & Innovation Plays
To capture upside from secular themes:
PLTR (Palantir) - data/AI defense and enterprise growth.
APP (AppLovin) - app monetization and gaming ecosystem.
GOOGL (Alphabet) - core tech exposure with AI tailwinds.
NFLX (Netflix) - content moat, global growth.
➡️ Suggested Weight: 25-30% combined
3. Cyclical & Industrial Leaders
These give exposure to economic recovery and capex cycles:
HWM (Howmet Aerospace) - breakout base, aerospace uptrend.
RTX (Raytheon Technologies) - defense/aerospace diversification.
CME (CME Group) - volatility/hedging proxy, strong cash flows.
CBOE (CBOE Global Markets) - options/liquidity boom exposure.
➡️ Suggested Weight: 20-25% combined
4. High Beta / Tactical Rotation
Shorter-term, opportunistic holdings that juice returns:
TPR (Tapestry) - discretionary rebound.
STX (Seagate) - storage cycle, AI demand tie-in.
DG (Dollar General) - consumer resilience.
HOOD (Robinhood) - retail flow capture, optionality.
➡️ Suggested Weight: 15-20% combined
5. Satellite / Alpha Enhancers
Niche names with asymmetric potential:
RPRX (Royalty Pharma) - biopharma royalties, steady income.
LDOS (Leidos) - government contractor/tech defense.
VST (Vistra) - power utility + renewables angle.
KR (Kroger) - consumer defensive.
MO (Altria) - high yield, value.
AVGO (Broadcom) - semiconductor powerhouse, AI demand.
➡️ Suggested Weight: 10-15% combined
🚀 Adjustments vs Past Allocation
New Adds: HWM (confirmed breakout), RTX (defense exposure), AVGO (AI).
Keep: PLTR, APP, GOOGL, TPR, STX, T, PM, etc.
Trim/Rotate: Smaller weights to KR, MO, add more CBOE, STX, VST to keep liquidity.
Balance: Defensive core vs. high beta growth.