Painted Hills
A Bullish Percent Indicator (BPI) check this morning revealed two more sectors joined the oversold group. They are: Health and Industrial with Technology (VGT) rapping on the door to be let into the oversold group. If Technology is included we have eight of eleven sectors oversold or a good time to launch a Sector BPI Plus portfolio.
Check the investment quiver below and you will see a simplified Bethe portfolio. As the Sector BPI Plus investing model continues to show promise I’ve been moving more ITA portfolios over to this investing style. Bethe is one portfolio on the move.
Bethe Investment Quiver and Holdings
Below is the current investment quiver and holdings for the Bethe portfolio. I intend to purchase a single share of VDE so I can begin a Portfolio Record for the Bethe which will then include performance of all eleven sectors.
The third column from the left indicates the “ideal” percentage to invest in the different sector ETFs. Think of these percentages as minimum percentages. The far right column shows the actual percentage.
Bethe Security Recommendations
If cash were available we look to VTI, VOO, and ESGV as buying opportunities. However, none of these three are recommended for purchase. VOO currently holds 40 shares and I will let this position stand. The only reason to sell is if cash were needed to populate an oversold sector.
Keep in mind that the following worksheet is not used to manage the eleven sectors. To purchase or sell a sector is monitored by the BPI data.
Bethe Manual Risk Adjustments
A limit order is in place to pick up another 30 shares of Industrial (VIS). Otherwise, the Bethe is set to run for another few weeks.
Bethe Performance Data
Over the past 22 months the Bethe managed to outperform the S&P 500 (SPY) by approximately one percentage point. Once all the oversold sector ETFs reach the overbought zone and are sold out of the portfolio it will be interesting to see if the IRR gap between the portfolio and SPY is greater than one percentage point.
Bethe Risk Ratios
The green arrow points to the official launch data of the Bethe as a Sector BPI Plus portfolio. Pay attention to the Jensen Performance Index and the Information Ratio. None of the five risk measurements match where they were a year ago and that is one of the motivators for switching investment models.
I need a few more months of data before publishing a Portfolio Report on the Bethe.
Questions and Comments are always welcome.
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