Analyzing Sector BPI Investing Model Sector By Sector: 29 June 2023

Pier Fishing

As we near the end of the second quarter I thought readers might find it useful to see some data as to how well the different sectors performed when used in the Sector BPI Plus model.  What I did was use the Investment Account Manager (IAM) commercial portfolio tracking program to group the four Sector BPI portfolios together.  Rather than “cherry pick” the top performing portfolio I combined all four to see how well the eleven different sectors performed when using the following logic.

1. When a sector reaches the oversold zone, defined as 30% bullish or lower, purchase the recommended number of shares based on the recommendation that comes from the Kipling spreadsheet.  Details are available when each Sector BPI portfolio is reviewed.
2. When a sector reaches the overbought zone, defined as 70% bullish or higher, place a 3% Trailing Stop Loss Order under the sector.

Here is the combined data for the four Sector BPI Plus portfolios tracked here at ITA.  As you can see, the Sector BPI hypothesis seems to be working.

• Consumer Discretionary:  63.7%
• Consumer Staples:  53.5%
• Energy:  12.1%
• Financial:  24.7%
• Health:  43.8%
• Industrial:  42.7%
• Materials:  17.6%
• Information Technology:  216.8%
• Communication Services:  83.7%
• Utilities:  12.2%
• Real Estate:  -18.5%

All percentages are annualized.  Real Estate is the only loser and we continue to hold this sector in all portfolios if I recall correctly.  The Real Estate sector has yet to reach the overbought zone so that negative may eventually convert to a positive.

Questions and Comments related to the Sector BPI model are welcome.  This model has only been operational for a little over six months so it is still too early to draw significant conclusions.

Tweaking Sector BPI Plus Model: 20 May 2023