A: Hi Gerry,

Thanks for the question.

Yes, I will be making some changes – although they will be in the “moderate” category.

Firstly, I will be re-balancing the weights across the sectors to reflect an updated view of the sectors. I will also look at some of the stock biases – for example in the banks, increasing exposure to the CBA and reducing exposure to NAB, and in materials, increasing the weight to BHP at the expense of RIO.

I will probably also cut out a couple of stocks that haven’t performed and the market has taken a very dim view of, such as UGL.

In relation to JB Hi-Fi, I think they are a very well run company – probably the pick of the Australian retailers. They have had a fantastic run up in share price, which to be honest, I missed.

While I am very bullish about the Christmas season this year (anecdote only, no data yet to support) – the question is however, is this already priced into their share push? For what it is worth – the consensus broker target price is $17.46.

Bottom line – I am inclined to think I have missed it with JB Hi-Fi and I don’t think I am going to chase.