We’re adding four new positions in Europe as we believe 2016 will be a breakout year for the region.

In the Conservative Portfolio, we add a consumer discretionary company, the Italian eye-wear giant Luxottica, that has been booking higher sales on growth in the U.S. and Europe.  Buy Luxottica (NYSE: LUX) up to $70.

In the Aggressive Portfolio, we add growth-orientated consumer healthcare, hotels or hospitality, and wealth management firms. Buy Royal Phillips (NYSE: PHG) up to $35. Buy Intercontinental Hotels Group (NYSE: IHG) up to $45, Buy UBS Group AG (NYSE: UBS) up to $25.

For details on these holdings, please see the main story in this week’s issue of Global Income Edge.

We’re also changing  one Conservative Portfolio holding to hold.  Sempra Energy (NYSE: SRE) has been dealing with a gas leak situation in its Los Angeles service territory that we believe it’s managing well. But prudence dictates caution until we know all the costs and liabilities. SRE is a HOLD.