When we first added PowerShares S&P Smallcap IT Portfolio (NYSE: PSCT) to our Short-Term Opportunities Portfolio, corporate spending on information technology (IT) was on the rebound, as businesses began refreshing their IT infrastructures after years of weak investment. We believed that would help drive revenue growth at small-cap IT firms and also spark a spate of mergers and acquisitions in the space.

But lately, we’ve begun to see slowing investment in IT. And the flurry of deal-making we saw in the sector last year also turned out to be a flash in the pan.

As a result, sell PowerShares S&P Smallcap IT Portfolio and continue buying iShares S&P Global Technology.

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When we added Market Vectors Gulf States (NYSE: MES) to our Short-Term Opportunities Portfolio almost exactly a year ago, the Arab Spring was in full bloom, with repressive regimes toppling across the region. But most of these countries have a long, difficult road ahead of them before reaching a true state of representative democracy.

Meanwhile, tensions in the region over Iran’s nuclear aspirations are posing a significant headwind for Middle Eastern equities, creating a huge wall of worry that the market is unlikely to overcome any time soon.

With little hope of an improved outlook in the near future, sell Market Vectors Gulf States.

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