Welcome to February. We are two days away from the mid-point of winter in the northern hemisphere. What better way to open the month than to review the Carson portfolio. Depending on your holdings in a Sector BPI portfolio, there may be a few recommendations or changes in the portfolios. Not so with the Carson as this portfolio does not hold any over-bought sector ETFs and there are no buying opportunities.
Carson Sector BPI Recommendations
The Carson holds a few shares of VOX and VPU, purchased when this new model was launched last year. Most of the holdings are either in a money market or SCHP.
This morning I updated the Bullish Percent Indicator spreadsheet and here are the results of the over-bought sectors.
- Consumer Discretionary (VCR). If you hold this ETF and the broker permits TSLOs to the nearest tenth of a percent, set the TSLO at 2.2%.
- Financials (VFH). Set the TSLO at 1.8%. Use 2% if the broker only permits TSLOs to the nearest percent.
- Industrial (VIS). Set the TSLO at 2.9%. Industrial is a new over-bought sector.
- Real Estate (VNQ). Set the TSLO at 2.3%.
If your portfolio holds any of these sectors and you already set the TSLO, then do nothing. Do not readjust the TSLO after once in place.
As for where to place cash, use the money market or SHV if seeking low volatility. SCHP provides more income, but the risk is higher.
No action is required of the Carson other than to invest the cash in either SHV or SCHP. I placed limit orders for both ETFs.
Carson Performance Data
The following data is for the past 13 months and the Carson is outperforming its benchmark, AOA as well as the S&P 500 (SPY). The following data comes from the commercial software, Investment Account Manager.
Carson Risk Ratios
While I updated the table to include February, keep in mind the data is exactly the same as January as we have no February 2023 information. From December to January the Jensen declined, likely due to a tad more risk. The Information Ratio increased so the portfolio improved with respect to the AOA benchmark and portfolio volatility.
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