SuperCap25 portfolios can be held for 12 months and then rebalanced and reconstituted. Of the components that have appreciated, enough is sold to return them to a 4% weighting. For those that have underperformed, additional shares will be bought to bring them back to a 4% weighting.
If the top 25 are different, the new companies that have appreciated onto the list will be purchased, and those who have been pushed off the list will be sold. The idea is that market values of the components will be reset every trading day by market forces.
Stocks that are losing sponsorship are being liquidated and those that are gaining sponsorship are being bought. A truly Darwinian process that uses market intelligence to pick the winners and sell losers.
Of course, everyone is concerned about a geopolitical risk, a currency collapse, a recession or depression. Short-term events will impact the markets and the SuperCap25 along with it; however, the SuperCap25 companies have endured countless economic cycles because their products and services add convenience and value to our lives.
They are pure vanilla, iconic, U.S. Blue Chip stocks. Keeping it simple with AT&T, Coca-Cola, Johnson & Johnson, Exxon Mobil, Apple, Amazon and more. Do you really need to worry about these companies during a market correction?
The simple answer is no, you don’t need to worry. Successful investors buy more when their shares are on sale, they use market declines to buy on the cheap.