Perhaps ironically, I do not see a compelling reason to change my top holdings whatsoever. Not yet, anyway. Funds like XPH and ITA have growth potential and are less tied to rate moves. They're not cheap like the emerging market funds above, but they're Fed-fueled uptrends remains intact. Therein lies the answer to many of the questions posed. Let your winners run until you've encountered a stop-limit loss order or your fund has breached a 200-day trendline. Do not rotate into losers until your prospect has risen above a significant moving average.
Am I sidestepping valuation here? Yes. Am I favoring technical trends. Absolutely. When world equities are being "goosed" (give credit to CNBC's Rick Santelli for the comment) by Federal Reserve quantitative easing intervention, when stocks falter in the absence of that intervention and when they succeed upon the announcement of each new infusion, you simply ride the waves. In all likelihood, once tapering occurs and once the amount is interpreted by markets as significant, stocks will plummet. At that time, I will be more interested in a hunt for bargain-basement "value." Follow @swan_investor This article was written by an independent contributor, separate from TheStreet's regular news coverage.