We want to take advantage of the markets recent strength to make a few adjustments to the IA portfolio.

Sells:

Exxon-Mobil (XOM): Without a doubt XOM is one the best positioned integrated oil company's in the world. As far as price appreciation is concerned, XOM price performance has lagged many of its peers. At this stage of the game, I would rather invest in companies that have a high probability of being bought, instead of the companies that may be the buyers.

Also, in Q3, XOM simply met their earnings expectations, while many of its competitors exceeded their consensus forecasts.

Wal-Mart (WMT): Wal-Mart by far is the retailer of choice if you had to own a retailer, but the company's sales growth is spotty since they mainly appeal to value consumers from a lower income base.

Higher energy prices tend to effect people who live on lower incomes than those in the middle or upper end of the income spectrum. Since oil prices are remaining stubbornly high, WMT same store sales growth will probably remain under pressure.