Portfolio 2 is set up to capitalize on tech sector strength before the bull market runs out of gas and real estate sector weakness as supply catches up with demand. 3 of the 4 stocks are up YTD, BABA +13%, HD +6% and PYPL +15%. 1, TREE -25%, is down.
On a 1 to 1, stock for stock allocation the portfolio is down -5% YTD. It is up +2% if allocation is distributed proportionally. When considering reallocation within the portfolio its leader, PYPL, can be acquired at roughly 3 to 1 to TREE.
The majority of analysts compared recommend PYPL as Buy. Conservative estimates put growth around 5% by year’s end. If growth is consistent with analyst’s predictions for equities contained within the portfolio would finish up by at least +15% by year’s end.