Greg Melling @GregMelling: "Portfolio Update – Tactical Rotation..."

Australia

Portfolio Update – Tactical Rotation into Energy & Defense Here’s what I’ve done this week and why: ⸻ 🔄 Capital Reallocation • Trimmed $IUSS.DE (iShares MSCI Saudi Arabia Capped UCITS ETF) Saudi Arabia ETF – locked in partial gains after strong performance • Holding $EMAARDEV.AE (Emaar Development PJSC) – thesis remains intact, no changes there Objective: redeploy capital into higher-conviction geopolitical exposures while maintaining a disciplined, mid-risk structure. ⸻ ➕ New Additions 1️⃣ Energy Select Sector SPDR Fund ($XLE) Core oil exposure. If Middle East risk premiums persist, energy cash flows reprice quickly. Clean, liquid, diversified. 2️⃣ Huntington Ingalls Industries ($HII) Pure-play U.S. naval shipbuilder. Aircraft carriers, submarines, long-cycle backlog. Structural defense positioning. 3️⃣ L3Harris Technologies ($LHX) Electronic warfare, ISR, communications. Modern conflict is networked — this is the infrastructure layer. ⸻ 🧠 Strategy Behind the Moves This is not a headline trade. It’s a structured stack: • Energy (XLE) → Macro oil leverage • Naval hardware (HII) → Hard-asset defense exposure • Defense tech (LHX) → Communications & electronic warfare Balanced across: ✔ Cyclical upside ✔ Contracted defense revenue ✔ Liquidity ✔ Mid-risk positioning ⸻ 📊 Portfolio Impact • Reduced regional concentration risk (Saudi trim) • Increased U.S. institutional-quality exposure • Maintained diversification (Emaar unchanged) • No excessive single-name sizing ⸻ Markets are volatile. Structure matters. Positioning for upside while keeping discipline.

Not investment advice. The author may have financial interests in the mentioned instruments.

2 Mentioned

IUSS.DE

iShares MSCI Saudi Arabia Capped UCITS ETF

EMAARDEV.AE

Emaar Development PJSC

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